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In his Autumn Statement, he revealed that the government is also "committed" to getting the European Union to scrap the existing 5% tax rate but, in the meantime, all the money raised through the tax will go towards women's charities.
This is what he said:
300,000 people have signed a petition arguing that no VAT should be charged on sanitary products. We already charge the lowest 5% rate allowable under European law and we're committed to getting the EU rules changed.
Until that happens, I'm going to use the £15 million a year raised from the Tampon Tax to fund women's health and support charities. The first £5 million will be distributed between the Eve Appeal, SafeLives and Women's Aid, and The Haven - and I invite bids from other such good causes.
The tax on the female health product makes the
However, under European Union classifications, tampons are put under the "non-essential luxury items" category - meaning that they are subject to tax.
The only way to scrap the tampon tax is for EU politicians to vote this change in. The British government cannot cut the tax. While the Labour government managed to get the tax on tampons reduced from 17.5% to 5% in 2000, it could not scrap the tax outright because it would breach EU rules.
People on social media seemed to be mixed over the declaration despite the government not being able to do anything about the tax rate at the moment:
15 million to womens charities from tampon tax. Labour didn't know how to react to that one. Lots of nods. But some sure to complain.
- Harry Cole (@MrHarryCole) November 25, 2015
A female-only tax to fund refuges for women escaping domestic violence (most often carried out by men). Erm. #spendingreview #tampontax
- Abby Clements (@AbbyCBooks) November 25, 2015
Oh no. #tampontax being used to fund women's shelters. Wrong, of course. We shouldn't be charged for sanitary wear much less taxed for it.
- Sonia Poulton (@SoniaPoulton) November 25, 2015
Women's health charities should be in a position to GIVE AWAY free tampons. Not depend on a #tampontax to get basic funding. GRAAARHGHHHH.
- Sara Barnard (@saramegan) November 25, 2015
£15m yr raised from tampon tax to be spent on women's health. How does that compare with amount slashed from budgets for #women's services ?
- jane martinson (@janemartinson) November 25, 2015