Since the onset of the severe economic crisis emerged as a result of Sri Lanka’s poor economic policies and deeply rooted corruption, an array of taxes were imposed on the population, beaten by the repercussions of irresponsible governance. Recently, the government of Sri Lanka imposed a tax on books, with a VAT increase of 18%, including books. Even though certain fiscal policies are required in times of adversity, taxation on books and educational materials can have even more disastrous long-term impacts, not only on the economy but also in all aspects of development, hindering the country’s process of sustainable development goals—there is an irreversible impact on HDI.

However, can Sri Lanka do this as a signatory of the Florance Agreement? Well, Let’s have a look at what Florence’s agreement is. The Agreement on the Importation of Educational, Scientific and Cultural Materials—also known as the Florence Agreement, of which Sri Lanka has been a signatory since January 8, 1952—stipulates that no Customs duties or any other charges, including value-added tax (VAT), be applied to imported educational, scientific, and cultural materials. The agreement covers books, publications, and documents —including music sheets, maps, and charts; works of art and collector’s pieces; and visual and auditory material; scientific instruments or apparatus; articles for the blind. The one exception concerns publications that are essentially for advertising purposes.

Based on this, and foreseeing the reversible repercussions the next generation of Sri Lankans would have to encounter, The European and International Booksellers Federation (EIBF) and the International Publishers Association (IPA) have expressed their deep worries about imposing an 18% tariff on books imported into Sri Lanka and taken proactive steps to promptly communicate to their thoughts to both the Sri Lankan government and the International Monetary Fund, in a letter where they have highlighted that the policy may contravene Sri Lanka’s commitments under the Florence Agreement and urge the Sri Lankan government to reconsider the tax hike.

These two associations emphasise the well-foreseen disastrous impacts that such a tariff will have on the country’s book sector and dissuade the government from adopting the policy. EIBF and IPA continue to advocate for Sri Lanka’s government to reconsider this measure to benefit the Sri Lankan literary landscape.

IPA’s President Karine Pansa insisted that tariffs should not be imposed on books, regardless of format, because of their key role in ensuring the success of education, literacy and cultural development policies in all countries because the books, irrespective of genre and readership, provide the basis of reading skills, curiosity, comprehension and individual enterprise; all of those contribute to a country’s sustained socio-economic growth. 

So, being a signatory and state party to the UNESCO Florence Agreement on the importation of educational, scientific and cultural materials, Sri Lanka must show its integrity to the global tools to which it is a signatory and its trustworthiness to the world. The removal of books from the list of VAT exemptions seems irresponsible when the country’s commitment under the Florence Agreement is considered.

— Damian McAuther—