Tampon tax means the total revenue earned by charging VAT on the sale of sanitary products. The revenue earned on the basis of this tax is used to support women facing domestic violence and given to women charitable organizations. The standard VAT rate in UK is 20% and it is applicable mostly to all goods & services whereas 5% VAT is charged on sanitary & some other products. Sanitary protection products are charged at a reduced rate but it is surprising to see that if protection or safety related equipment’s are VAT free than why women’s are paying VAT on sanitary products which is the most essential part of her life. Tampons and other sanitary products are classified under “Luxury items” in UK which should be classified under “essential items”. As per govt., they cannot reduce or remove the VAT rate entirely as EU rules stop them for doing it.
Not using sanitary pads can cause many problems to women’s. Some of the problems are given below –
Many supermarkets come in support of women’s by reducing the cost of sanitary products by 5%. By reducing the cost by 5%, it becomes easy for women to purchase expensive items such as pads & tampons on day to day basis. Three companies named “First Tesco, Wait rose and Co-op pledged to pay the tampon tax on behalf of their customers. They reduce the prices of sanitary products and make them available at a cheaper price in the market. Event brand director of Tesco’s group named “Michelle Mc Ettrick” says that “For many of my customer’s, tampons, panty liners and sanitary towels are “essential products”. By the way, it is not sure that whether government will take the same step and abolish the VAT completely from sanitary products or not.
The European Union is aiming to bring VAT on sanitary products to zero in future which is currently set at 5%. There is a possibility that VAT rate on sanitary products will be abolished in future in UK like other countries India, Australia, Canada, Ireland, Slovakia & Kenya already abolished the tax.
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Sumit Agarwal Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.
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