Victory for campaigners as Rishi Sunak set to scrap 'tampon tax' in Budget
2 min read
Rishi Sunak will use his first Budget as Chancellor to scrap the "tampon tax".
In a huge victory for campaigners, the move will mean that VAT is no longer charged on female sanitary products from the start of next year, when the UK is no longer tied to any EU rules.
As a member state, the UK had no choice but to charge VAT on tampons and sanitary towels.
Since 2015, all money raised from the charge has gone into a Tampon Tax Fund and spent on women's charities.
Legislation to implement the change is already in place under the 2016 Finance Act, which said the Government would remove the tax “once the UK had discretion to do this”.
According to the Treasury, the move will save women an average of £40 over their lifetime - 7p on a pack of 20 tampons and 5p on a pack of 12 pads.
Anti-tampon tax campaigner Laura Croyton said: "This is amazing and such a cause for celebration. So many people have been campaigning about this for generations and finally we’re being listened to.
"But that doesn’t mean that the fight is over. We’re still having to talk about tampon tax until the deadline that the Government has just set is reached in December 2020 - and we won’t stop talking about the tampon tax until supermarkets respond by lowering their prices."
Elsewhere in the Budget Mr Sunak is expected to announce measures to protect the future of cash for everyday spending.
Consultations with industry and regulators will start soon after the Budget, including the Bank of England, Financial Conduct Authority and Payment Systems Regulator.
Around two million people in the UK still rely on cash for their day-to-day spending despite the increasing popularity in digital payments..
Mr Sunak said: "People across Britain work hard for their money, with millions relying on coins and notes to make their daily payments.
"That’s why, at next week’s Budget, I’ll be making sure they can continue to access and spend their earnings in whatever way they want."
The Chancellor will unveil his first Budget on Tuesday, barely a month after he was promoted to the role following the shock resignation of Sajid Javid.
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