asked the Minister for Finance why books, which are sent free of charge to this country by publishers in Britain for the purpose of review, are taxed.
Ceisteanna—Questions. Oral Answers. - Book Taxes.
94.
Books are liable at importation to turnover tax at a rate of 5 per cent. However, where the charge involved is less that £0.13 on goods in any one parcel, a statutory exemption allows importation free of tax.
An exemption for books, irrespective of value, imported for review, besides being open to abuse would be contrary to the comprehensive nature of the turnover tax and would invite applications for exemption in other cases claimed to be equally meritorious.
Would the Minister agree that there are a number of serious inequities here that need to be looked into? There is the problem for members of professional bodies who receive the journal of their relevant learned society or body and which has a nominal fee attached to it, for the odd copy that is sold to the public, and who are then charged turnover tax effectively on their membership of the society. Would the Minister consider looking into such cases and having a thorough review of the whole system which is causing great concern to a whole range of people and which is interfering with academics seeking works that they need for their activities as well as interfering with the whole process of the review of books? It is, therefore, working in a manner that is hostile to the interest of the book-sellers who, in fact, proposed this originally.
I do not think I could accept the last part of the Deputy's question. The position at the moment is that books in the main, with the exception of such religious books as breviaries, missals and hymnals, are subject to 5 per cent turnover tax only. The effect of the statutory exemption that I mentioned is that on a parcel of books valued at less than £2.60 there is a complete exemption from turnover tax. In the case of people who are registered for turnover tax, books needed in connection with their business may be obtained free of tax by quoting their registered number to the suppliers. In the case of a book imported by, say, a newspaper for the purpose of review, this would be regarded as being within that category and consequently, would not be liable to tax. That being so, I do not think that the problem referred to by the Deputy is nearly as widespread as he may consider it to be.
Can the Minister say whether in the case of books sent to newspapers for the purpose of review, there is any hold-up in delivery or in customs clearance?
I have not had any complaints of undue delays.
Therefore, the books come straight through to the newspaper if their registered number has been quoted to the publishers and there will be no question of the newspaper representatives having to go to the office at Amiens Street and paying a fee.
I am not aware of any complaints in connection with this procedure but if such complaints should be made, I would have them investigated. I am reiterating that in cases like that there is no liability to turnover tax.
Journals of learned societies are causing problems. This is a complete anomaly.
I am afraid that if they do not come within either of the procedures I have mentioned, there is nothing I can do about them because further exemption would not be justified. I am sure that without any great exercise of ingenuity the Deputy can think of other items for which a better case for exemption could be made than for the journals of learned societies.
The fact is that these journals have a nominal price put on them and sometimes no copies are sold or, at least, very few are sold. This is the method adopted to enable them to be sold if somebody wishes to buy a copy. They are part of what people are entitled to for their membership subscription. These journals should not be treated as books.
If the price is only nominal——
Very often the price is extremely high. If a person pays his subscription he is entitled to received the journals, but for any copies that are sold outside of those sold to libraries, perhaps, the price is often as high as £3 although the subscription may be much less than that.
In so far as they do not come within the statutory exemption further exemption would lead undoubtedly to very well-founded claims for exemption in more meritorious cases and the whole basis of the tax would disappear.
Would the Minister look into this particular case?
I have looked into it.
Has the Minister considered the case of journals of learned societies?
Yes.
I may supply the Minister with further data on this.