Lest we forget, newspapers+magazines get state subsidy in shape of 20% VAT exemption, whereas digital media is full rate. Is that fair?
@psmith @paullomax Interesting redefinition of the word "subsidy"
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@bazzacollins@paullomax OECD says subsidy is a "measure that keeps prices for consumers below market levels" which is arguably true here -
@psmith@PaulLomax All manner of goods are exempt from VAT. Newspapers/mags have been for ever. That is the "market level". -
@bazzacollins@psmith (They’re not exempt, they’re zero rated). It’s still a subsidy. An anachronism. We subsidise cakes but not biscuits… -
@paullomax@psmith A subsidy, as the OED states, requires the transfer of a "sum of money". Not taxing something isn't a subsidy. -
@bazzacollins@paullomax In any case it's £600M a year publishers and/or their consumers aren't paying. -
@psmith@Paullomax That's a ridiculous argument. That's like saying Gov isn't getting £650bn from Tesco not applying VAT to food. -
@bazzacollins@psmith Difference is most of the stuff you make food out of is zero rated too. -
@paullomax@psmith Newspapers/mags not taxed because it was (rightly) viewed as a tax on knowledge. - 1 more reply
New conversation -
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