The exemption of book publishers from VAT has been extended to 2015.
The Law on the 2013 Budgetenvisages cuts in funding for book publishing by almost 10%.
5.3.4 Literature and libraries
The Law on Copyright and Neighbouring Rights (1994, with amendments 1999, 2001) and the Law on Professional Artists and Artists' Unions (1997) secure the right of authors and literary translators. Royalty rates for literary and translation activities established by the Cabinet of Ministers Resolution (2000) are based on the living wage and do not consider new market conditions. As a result, existing rates do not encourage such activities. The draft Law on Copyright and Neighbouring Rights has been prepared and will be considered by the Parliament in 2012 (see also chapter 5.1.7).
The Law on Publishing (1997, 2002) and the Law on State Support to Book Publishing (2003) determine the state policy and measures to provide conditions for the development of national publishing including the exemption of book producers from VAT since 2005, extended to 2015. According to this Law, which came into force in 2004, Ukrainian book producers were exempt from taxes until 2008, then to 2015 (see also chapter 5.1.5).
The Law on Libraries and Librarianship (1995, 1999, 2009) regulates relations between the state and public libraries and determines the organisation of library activities in Ukraine.
The Law on the 2013 Budget envisages a decrease in financing in the state programme on book publishing "Ukrainian books" from UAH 40 million in 2012 to UAH 37.5 million. The State Committee on Television and Radio Broadcasting responsible for state book publishing plans to publish on its website estimates of all editions included in the programme. The new order envisages an increase in the number of printed copies. At the same time, the government will now only finance 50% of book production (these books will be distributed among libraries and embassies); publishers will finance the other 50% and can put books on free sale. Publishers will have to ask the State Committee on Television and Radio Broadcasting for permission to print additional copies of books, published under the programme "Ukrainian books", for commercial sale (see also chapter 5.1.3).