German press group calls for dropping tax on newspapers

The German government needs to do more to help newspaper publishers, a national industry group said, as the industry struggles with falling circulation figures and rising costs.

"We need a delivery subsidy immediately," said media manager Stefan Hilscher, who is among the three people heading Germany's Federal Association of Digital Publishers and Newspaper Publishers (BDZV).

The next goal would be 0% tax, he said in an interview with dpa. In Germany, there is currently a 7% tax on press products.

"We realise that in other European countries, the appreciation of the media is completely different," he said, pointing to the fact that tax is not charged on newspapers in several countries in Europe. In others, there is a 2% tax.

This also applies to all press products, meaning magazines as well as daily newspapers, he said.

Meanwhile, some nations subsidize the business, he said. "We will also demand this from our politicians."

Press publishing groups have been calling for subsidies for deliveries for years, pointing to falling circulation figures and the minimum wage for delivery staff.

The situation is especially tough in rural areas, newspaper companies say.

Germany's previous government failed to introduce a delivery subsidy but the current government made this part of its coalition agreement.

However, so far there has been little progress in this area, as the different ministries weigh which is responsible for the issue.

Matthias Ditzen-Blanke, who is also among the three leaders of the press publishing group, alongside Hilscher and managing director Sigrun Albert, underlined that the government is behind the plan.

"There is a clear declaration of intent that there should be a delivery subsidy," he said, adding that Chancellor Olaf Scholz clearly backs the delivery proposal.

"We also expect to make this area competitive again in the European context, as this is no longer the case," said Albert.