Retailers and manufacturers are under pressure to reduce the prices of feminine hygiene products following the EU deal to scrap the “tampon tax”.
The Government said last week that it will legislate to exempt sanitary products from VAT after an EU agreement to give member states more control over the levy.
These products are currently taxed at 5 per cent, the lowest rate allowed under European law.
The Labour MP Paula Sherriff is now worried that the scrapping of the tax – at a cost to the Exchequer of £17m – will not change the price charged to women. France recently cut VAT on tampons and sanitary towels from 20 per cent to 5.5 per cent, but prices have remained broadly similar – meaning the move has simply boosted company profits.
Ms Sherriff has written to big retailers and suppliers this weekend, urging them to cut prices in line with the VAT. She told The Independent: “I hope that they will agree not only to the price cut but also to support some of the women’s charities that provide vital services. It will be simply unacceptable if they try to pocket a £17m windfall.”
Tracy Stewart at the trade body the Absorbent Hygiene Products Manufacturers Association, warned: “France has dropped its rate, but the price has not dropped accordingly.”
