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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Tax pressure pushes Ukrainian book prices 35-65% over those in Russia

11 April, 2000 - 00:00

While in other countries publishing is rapidly developing and reforming, Ukraine shows reductions in both the quantitative and qualitative indicators of book printing. The Kharkiv-based Narodna Knyha (People’s Book) regional charitable foundation, well aware of the problems of publishing and book trade in this country, has drawn up and sent an open letter to Verkhovna Rada and the Cabinet of Ministers of Ukraine. The letter aims to attract attention to the problems of book publishing, to support the domestic publisher, and to preserve our rich national traditions in the publishing business.

It says, among other things, “We cannot ignore the fact that the state is trying to take some steps in the right direction. For example, sales of domestically produced books are now exempt from the value added tax. Considerable price cuts are being offered in the delivery of books by mail. But the process of book publishing has many stages tax concessions do not embrace. As a result, the cost of a book, for example, in Russia, where all stages of book production are exempt from the VAT and profit tax, and all materials used are being imported duty-free, is 35-65% that of a similar Ukrainian book. This has the following negative effects:

“1) the shift of book production by many Ukrainian publishers to Russia makes it impossible for the printing services market to develop in Ukraine;

“2) the number of books published in Ukraine is drastically decreased;

“3) the final cost of books is drastically increased for Ukrainian consumers;

“4) the rich Ukrainian traditions of book printing are being lost;

“5) the desire of publishers to cut production costs and publishing risks cause an ever-increasing number of low quality and exclusively commercial publication to the detriment of the literature which develops and popularizes the best cultural achievements;

“6) the shortage of reasonably priced textbooks greatly hampers the teaching process in secondary and higher schools;

“7) the absence of a sufficient number of technical and reference publications is reducing this country’s scientific and technological potential;

“8) prohibitive costs preclude the publication of books by young talented authors who could extend the list of Ukrainians who have made contributions to world culture; and

“9) the dwindling number of publications in the official language leads to the loss of our cultural roots.

“According to some estimates, Ukrainian book publishing is in a critical condition. Consider one fact. Over the past year, the number of various books published in Ukraine has dropped from 45,100,000 (total 1998) to 18,070,000 (total 1999). Thus, it is necessary to adopt, precisely now, a book printing support program which, according to leading experts in this field, should include:

“1) exemption from the VAT at all stages of book production;

“2) exemption of Ukrainian publishers and printing enterprises from the profit tax provided books are the main part of their output;

“3) granting Ukrainian publishers the right to sell their own products without trade patents; and

“4) extending soft developmental credits to Ukrainian publishers.”

Thus far, this letter, addressed to Ivan Pliushch, Viktor Yushchenko, Mykola Zhulynsky, and Ivan Drach, remains unanswered.

PS. Narodna Knyha’s Internet site (www.culture.kharkiv.org) has opened a chapter for a debate by all the interested persons.

By Mykhailo PYLYPCHUK, President, Narodna Knyha Kharkiv Regional Charitable Foundation, Mayor of Kharkiv
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