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'Tampon tax' set to be abolished in Wednesday's Budget

'Tampon tax' set to be abolished in Wednesday's Budget

The 'tampon tax' is set to be abolished in Wednesday's Budget – with a zero rate of VAT applying to sanitary products from 2021.

Chancellor Rishi Sunak is expected to announce that the tax will finally be scrapped when the transition period for leaving the European Union ends on 31 December 2020.

The Government says that it was previously unable to apply any rate of VAT lower than the current reduced rate of 5% to sanitary products because of an EU rule.

The Government estimates that the tax cut will save the average woman almost £40 over her lifetime – with a saving of 7p on a pack of 20 tampons and a 5p saving on a pack of 12 pads.

Save money on tampons, pads and reusable sanitary products with our Cheap Sanitary Products guide.