You are here: Home - Household Bills - News -

‘Tampon tax’ abolished as VAT is scrapped on sanitary products

0
Written by: Emma Lunn
01/01/2021
The so-called tampon tax, which treated period products as ‘non-essential’ had been labelled ‘sexist’ by campaigners.

The 5% rate of VAT on sanitary products was abolished on 1 January 2021, with sanitary products now having a zero rate of VAT.

The government said the move was part of wider action to end ‘period poverty’ which includes the roll out of free sanitary products in schools, colleges and hospitals.

The move was made possible by end of the Brexit transition period and freedom from EU law mandating VAT on sanitary products.

Chancellor Rishi Sunak said: “I’m proud that we are today delivering on our promise to scrap the tampon tax. Sanitary products are essential so it’s right that we do not charge VAT.

“We have already rolled out free sanitary products in schools, colleges and hospitals and this commitment takes us another step closer to making them available and affordable for all women.”

The chancellor announced in the March 2020 Budget that the tampon tax was to be abolished from 1 January 2021.

Felicia Willow, chief executive of the Fawcett Society, said: “We warmly welcome the scrapping of VAT on all sanitary products from 1 January 2021 and congratulate the government on taking this positive step.

“It’s been a long road to reach this point, but at last the sexist tax that saw sanitary products classed as non-essential, luxury items can be consigned to the history books.”

The UK government established the Tampon Tax Fund in 2015 to donate money to charity equivalent to the amount of VAT revenue collected, with £47m donated since then to charities working with vulnerable women and girls.

The zero rate for sanitary products was legislated for in the Finance Act 2016, enabling the change to come in to force as soon as the UK has discretion to do so under its legal obligations.

The government estimates the move will save the average woman nearly £40 over her lifetime, with a cut of 7p on a pack of 20 tampons and 5p on 12 pads.

In November 2020, MPs in Scotland voted to make sanitary products freely available to anyone who needs them. The Sanitary Products (Free Provision) (Scotland) Bill will cost an estimated £9.7m.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week