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The 5% VAT rate on women’s health products, known as the “tampon tax”, has been eliminated.
Government had pledged to eliminate the unpopular tax in the March budget and the change went into effect on New Years Day.
EU law had prevented member states from lowering VAT below 5%, but Brexit means that a zero VAT rate can now be introduced for products.
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The moment Britain left the EU
Before the UK left the bloc, vintage goods were treated as “luxury” rather than “essentials”, a practice described as “sexist” by some activists.
During Wednesday’s Brexit debate, Sir Bernard Jenkin, Conservative Chairman of the Commons Liaison Select Committee, said: “I feel like we’re having a debate about a glass half full or half empty.
“But I think it is worth reminding ourselves that we will be able to do things like abolish the tampon tax, which so many honorable ladies criticized against the government, just because we are leaving the EU.”
The Treasury has estimated that the measure will save the average woman nearly 40 pounds over her lifetime, with a cut of 7 pence on a 20 tampon pack and 5 pence on 12 sanitary pads.
Chancellor Rishi Sunak said: “I am proud that today we are fulfilling our promise to eliminate the tax on tampons. Medical devices are essential, so it is correct that we do not charge VAT.”
“We have already implemented free health products in schools, universities and hospitals, and this commitment brings us one step closer to making them available and affordable for all women.”
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November 24: Free period products vote expected in Scotland
Felicia Willow, Executive Director of the women’s rights charity Fawcett Society, said: “We warmly welcome the elimination of VAT on all medical devices as of January 1, 2021 and we congratulate the government for taking this step. positive”.
“It has been a long way to get to this point, but at last the sexist tax that caused sanitary products to be classified as non-essential luxury items can finally be consigned to the history books.”
Others have questioned the claim that the change is only due to Brexit.
The long campaign to eliminate the tax on tampons has included debates in parliament by then-MP Paula Sherriff, prompting the Labor government to switch to sanitary products at a reduced rate of 5% since January 2001, the lowest rate possible according to EU standards.
An online petition started by activist Laura Coryton in 2014 was signed by more than 300,000 supporters.
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Companies prepared for Brexit changes
In 2016, the European Parliament voted unanimously to start the regulatory process to allow any EU country to repeal any tax on tampons, thanks to pressure from then Prime Minister David Cameron.
Some activists worry that change will no longer occur in the EU without the UK as a driving force.
The European Commission published proposals to change the EU VAT rules in 2018, which would allow member states to choose a VAT-exempt product, but this has not yet been agreed by all member states.
Since 2015, the 15 million pounds raised by the vintage goods tax has been spent on charities helping women, such as women’s shelters and domestic abuse charities.
A replacement for financing has not been announced.
