VAT on tickets for dance events is now being reduced from 25 to 6 percent. But Lasse Lundberg, who leads the dance band Blender, does not think the entrance price should automatically be reduced.
Ticket prices are already so low. It's too cheap to go out and dance these days, on average a ticket costs 250 kronor, he says.
He hopes that the reduced VAT will give the industry better finances, so that it can remain in existence.
That's why we've been fighting for this since the 1990s, says Lasse Lundberg.
Into the “cultural spotlight”
Karin Inde, chair of the Musicians' Association, points out that reduced VAT improves the competitive conditions between private dance band organisers and VAT-exempt non-profit associations such as Folkets Hus and Park associations.
Overall, dansband musicians welcome the reform. Dansband music and dance events are now allowed to enter the cultural spotlight. With a dancing audience, they have been forced to add 25 percent VAT to ticket prices. Dansband events have therefore not been able to be included in festivals and other major cultural events. It has become unfair, she says.
Organisers can now choose between two different paths - either reduce the ticket price when the VAT is reduced, or ensure that they get more revenue by not reducing the price. With the latter option, private organisers do not lose their revenue.
We musicians will then get braver promoters, but it is also a question of rejuvenation. Promoters will dare to develop the industry more, and musicians can demand better pay. There is a need for that, says Karin Inde.
Hope for rejuvenation
Bookers also see the reduced VAT as a much-needed addition.
Hopefully, there will be more new organisers who start running dances when the pressure is not so severe financially. This in turn may lead to more new and younger bands being started, so we will have a rejuvenation in the market, says Mats Tigerström at the booking company Nöjeskällan.
He also does not see that there is room today for organisers to lower ticket prices. If VAT had not been reduced, many organisers who own and operate their facilities would probably have ended up having to close their operations, he believes.
Today, there is no money left for them. It is enough for the facility to suffer roof damage that may cost 100,000-200,000 kronor, and it is over, says Mats Tigerström.
The lower VAT rate of 6 percent has previously applied to admission to similar cultural events such as theatre, concerts and ballet, that is, when attending performances.
Other events that are not performances, such as dance events, nightclubs and discos, have had VAT of 25 percent.
To be considered a dance event, there must be clearly demarcated areas intended for dancing where visitors can dance to music themselves.
According to the Swedish Musicians' Association, there are currently between 20 and 25 dance bands left in Sweden that tour full-time. They have 100-150 gigs per year per band.
