
France
| By Barbara Casassus
The French book trade has reacted badly to the government’s decision to raise the reduced VAT rate on books from 5.5% to 7% on 1st January as part of a financial package to help shrink France’s mushrooming public deficit.
The French Publishers Association (Syndicat National de l’Edition, SNE) and the French Booksellers Association (Syndicat de la Librairie Française, SLF) condemned the move, as did several members of parliament and the opposition Socialist party. The party warned the book sector was in imminent danger with “little hope” for publishers and independent booksellers. It said the budget-saving measure was ridiculous.
The SNE said it regretted the absence of consultation over the move while the SLF warned that it could cut average net profits from 0.3% of sales to 0.2% and lead to the closure of hundreds of bookshops. Alexandre Bompard, c.e.o. of French cultural products chain FNAC, was reported as saying that the increase threatened the fragile book sector, which was already under pressure.
He was backed by the Syndicat des Disributors de Loisirs Culturels (SDLC), which comprises Decitre, FNAC, Cultura, Le Furet du Nord and Virgin Stores. The rise would “generate large losses” on stocks acquired with 5.5% VAT, and “create insurmountable problems” in a market where prices are printed on books, he said. Already the decline in sales of books by bricks and mortar stores this year is undermining chains, which are having to absorb higher overheads, it added.
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