Budget 2020: Tampon tax scrapped on all sanitary products

From January 2021 there wil be no VAT on sanitary products

The tampon tax has been scrapped it was confirmed as part of Wednesday’s budget.

Chancellor Rishi Sunak told the House: “I can also now confirm now that we have left the EU, that I will abolish the tampon tax

“From January next year there will be no VAT whatsoever on women’s sanitary products.”

“And I congratulate all right honourable members who campaigned for this,” he added, in his first ever budget announcement, after his predecessor Sajid Javid stood down.

The announcement was expected after years of campaigning from MPs and women’s groups.

But under EU laws, tampons and sanitary towels are classed as luxury items as opposed to essentials.

This means member states in the EU cannot reduce the tax rate below five per cent.

Rose Caldwell, CEO of Plan International UK, said: "Today's scrapping of the tampon tax is a landmark moment in the fight against period poverty, and comes not a moment too soon."

In November Germany was praised for reducing the tax on sanitary products from 19 per cent – the same luxury bracket as caviar.

The change in UK tax is estimated to save the average woman almost £40 in her lifetime, thanks to a 7p reduction on a pack of 20 tampons and a 5p reduction on a pack of 12 pads.

Since 2015 the VAT charged on tampons and other sanitary products has been put into a so-called tampon tax fund by the government, and then given to women’s charities.

This was proposed as a short-term solution until the tax could be scrapped totally.

But the scheme was criticised when it emerged money was not being ring-fenced for women-specific causes and some was being donated to anti-abortion charities.