Period underwear could be set to fall in price after the government said the product would no longer be subject to value added tax (VAT) from 1 January.
Removing the tax should make the pants, seen as a greener alternative to tampons and sanitary towels, up to £2 cheaper per pair, the Treasury said.
The move follows a campaign by retailers and charities for the tax to be lifted.
The move follows a campaign by retailers and charities for the tax to be lifted.
But period pants, which have become increasingly popular over the last decade, were classified as garments rather than period products, and so were still subject to the tax.
Following the “Say Pants To the Tax” campaign backed by retailer Marks & Spencer and period pants brand Wuka last year, the chancellor announced in his Autumn Statement that the tax would be lifted for period underwear too.
However some retailers cut the price of their period pants when they joined the campaign, saying they would absorb the VAT cost themselves. One of those, supermarket chain Tesco, said the price of the underwear would therefore not fall further in its stores as a result of the tax change.
VAT is charged at 20% on most products sold to consumers, but some essential products, including food and children’s clothes are exempt.
Period underwear could be set to fall in price after the government said the product would no longer be subject to value added tax (VAT) from 1 January.
The move follows a campaign by retailers and charities for the tax to be lifted.
Removing the tax should make the pants, seen as a greener alternative to tampons and sanitary towels, up to £2 cheaper per pair, the Treasury said.
But period pants, which have become increasingly popular over the last decade, were classified as garments rather than period products, and so were still subject to the tax.
The move follows a campaign by retailers and charities for the tax to be lifted.
The move follows a campaign by retailers and charities for the tax to be lifted.
But period pants, which have become increasingly popular over the last decade, were classified as garments rather than period products, and so were still subject to the tax.
Following the “Say Pants To the Tax” campaign backed by retailer Marks & Spencer and period pants brand Wuka last year, the chancellor announced in his Autumn Statement that the tax would be lifted for period underwear too.
However some retailers cut the price of their period pants when they joined the campaign, saying they would absorb the VAT cost themselves. One of those, supermarket chain Tesco, said the price of the underwear would therefore not fall further in its stores as a result of the tax change.
VAT is charged at 20% on most products sold to consumers, but some essential products, including food and children’s clothes are exempt.
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