Learn something before speaking
In a vain attempt to forestall the usual freetard comments, I'll repeat what many seem to be unwilling to remember - less than a quarter of the total cost of publishing a book is spent on manufacturing and distribution of the physical product. That's true across the industry, and in some areas it's considerably less than that (scale having its benefits).
Add in the significant cost of formatting the text for all the various devices (which is a lot harder than you'd think if you've never tried) as well as the VAT issue, and there is genuinely very little room for savings in ebooks.
And for those who accuse publishing of excessive profiteering, you've clearly never actually looked at the results of most publishing companies. If we wanted massive profits, we'd be in a different industry - software, perhaps!