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Rishi Sunak, UK’s First Indian-origin Finance Minister, Set to Scrap Unpopular Tax on Sanitary Products

Rishi Sunak arrives at Downing Street in London on Thursday. (Reuters)

Rishi Sunak arrives at Downing Street in London on Thursday. (Reuters)

The 5 per cent rate of VAT on sanitary products — referred to as the 'tampon tax' — will be abolished from January 2021.

  • PTI
  • Last Updated: March 7, 2020, 3:34 PM IST
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London: Rishi Sunak, UK's first Indian-origin finance minister who is preparing to present his first budget on March 11, is reportedly set to scrap an unpopular tax on women's sanitary products.

The 5 per cent rate of VAT on sanitary products — referred to as the "tampon tax" — will be abolished from January 2021, according to UK media reports.

A European Union (EU) directive meant the rate could not fall below 5 per cent while the UK remains in the economic bloc's customs union and therefore is free to change it as a non-member at the end of the Brexit transition period in December.

It will be part of a number of manifesto pledges made by British Prime Minister Boris Johnson that his new neighbour at No. 11 Downing Street, Sunak, is likely to include in his budget.

Legislation has already been through Parliament to ensure the change can be made. The UK Treasury department estimates the move will save the average woman nearly GBP 40 over her lifetime, with a cut of 7p on a pack of 20 tampons and 5p on 12 pads.

The budget will also see Sunak, the 39-year-old son-in-law of Infosys co-founder Narayana Murthy, commit to new laws designed to ensure that millions of people have access to cash through enough cash points as digital payments catch on.


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