THE Government will not oppose calls to scrap the “tampon tax” to avoid the
threat of an embarrassing Commons defeat.
Eurosceptic MPs had been threatening to rebel over the five per cent VAT rate
on women’s sanitary products. George Osborne had hinted he wanted to scrap
the charge, but his hands were tied by EU tax law.
Now EU leaders have agreed to allow a zero VAT rating on tampons.
To avoid yet more embarrassing infighting in the party and the prospect of a
Commons defeat, the PM signaled he will not oppose a motion from a Labour MP
tabled for tomorrow calling for a VAT exemption on sanitary products.
David Cameron today confirmed the EU would be extending VAT exemptions to
sanitary products.
He told MPs: “This is an important breakthrough.
“It means that Britain will be able to have a zero rate for sanitary products,
meaning an end to the tampon tax.”
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Jeremy Corbyn claimed it as “another victory” on the Budget for the Labour
party.
Labour MP Paula Sherriff had tabled the amendment, which was expected to be
supported by at least 25 Tories and have the support of the SNP support –
enough to defeat the Government.
More than 300,000 people have signed an online petition calling for the
“tampon tax” to be scrapped.
The government has also conceded ground over the issue of VAT on solar panels
and other domestic energy saving and insulation products, amid a threatened
Conservative rebellion over a potential tax rise.
It comes as the Tory party descends into civil war over cuts to disability
benefits.
Last week Ian Duncan Smith resigned as the Secretary for Work and Pensions,
claiming the Cameron and Osborne had given up on a “One Nation” Tory party.