THE Government has reached a deal with the EU to scrap the controversial
tampon tax.
The agreement allows the UK to remove VAT for sanitary products such as
tampons.
EU rules had prevented the Treasury from cutting the rate on such items below
its current 5 per cent.
The deal, which is expected to be published next Wednesday, will come as a
huge relief to David Cameron.
The PM was facing a Commons rebellion over the tax, with a number of MPs
threatening to vote through a change in UK law in defiance of EU rules.
But critics say the tax was just one example of how barmy EU regulations
automatically overrule British law.
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Tory backbencher Anne-Marie Trevelyan previously said: “One of the key reasons
that I am voting to leave is because we are losing more and more control to
the EU.
“The people we elect should be responsible for setting the taxes in this
country – not unelected EU judges and bureaucrats.
She added: “Our Chancellor is unable to take this decision that will
benefit women because VAT is controlled by the EU. The only way to get this
change is to vote Leave on 23 June.”
More than 300,000 people had signed a petition calling existing VAT rules
“sexist” and demanding for tampons and other sanitary products to be axe the
levy.
EU leaders said in a joint statement: “We welcome the intention of the
Commission to include proposals for increased flexibility for member states
with respect to reduced rates of VAT, which will provide the option to
member states of VAT zero rating for sanitary products.”