I'm probably going to be shot down in flames for the following but, here goes.
I agree with the 20% VAT on eBooks [GrumpyReader ducks].
I'm lucky enough to be able to read and I have a job (thanks to an education system funded by taxes). I can therefore afford to buy an eBook reader which, lets be honest, is aimed towards bibliophiles rather than the average tabloid paper reader.
Does an extra 20% on top of the purchase price hurt - of course. Can I afford it? Yes.
I'd rather pay an extra 20% on my eBooks and leave paper books VAT free, thus hopefully encouraging less avid readers to pick up something other than the National Enquirier...
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