Labour MEPs have accused David Cameron and George Osborne of attempting to “steal the spotlight” over EU reform plans that are likely to see the ‘tampon tax’ scrapped.
The Chancellor said this week that the Government had “achieved what no British Government has even tried to achieve” by securing an agreement between EU leaders to zero-rate VAT on women’s sanitary products.
Downing Street had said the Prime Minister personally lobbied European Commission (EC) President Jean-Claude Juncker on the margins of this week’s European Council summit.
But according to documents seen by The Independent, Commission plans that would pave the way for member states to zero-rate sanitary products were already in place last week, but were delayed till next week, following months of work by tax officials.
Labour VAT spokesperson Anneliese Dodds MEP said: "David Cameron is trying to steal a spotlight that rightly belongs to the European Union and all those that have lobbied hard for this change. Nothing was agreed at the European Council meeting and David Cameron secured no concessions."
A Downing Street spokesperson rejected the claims.
“Yes the Commission work has been going on for a while,” the spokesperson said. “The PM then had the opportunity to speak to the President of European Commission before the College of Commissioners meets next week to decide what will be in those proposals, to underline the importance of giving member states the option to zero-rate VAT on sanitary products.”
The Treasury confirmed the Government would legislate to end the tampon tax in next week’s Finance Bill.
Officials also said that low VAT rates for energy-saving products such as solar panels and loft insulation would remain in place, amid concerns that EU rules would have demanded a major tax hike.
Both measures, which have been pledged in advance of the European Commission’s VAT Action Plan, to be published next week, are aimed at warding off a threatened backbench rebellion that could have scuppered George Osborne’s Finance Bill.
