THE PERIOD TAX

Illustrated by Megan Bevis

Sanitary products are taxed due to being deemed a “luxury item” –– but what is so luxury about tampons and pads and why are we being charged for having periods?

What is it?

The Period Tax is the 5% VAT rate charged to all sanitary products. Although better than the standard VAT rate of 20%, the reduced rate is still a widespread debate in the UK since it was first implemented in 1973.

Why do we have to pay it?

Sanitary products are currently being classed as luxury and non-essential items under EU rules, which is stopping the UK government from scrapping the tax all together. Items such as postage stamps, bicycle helmets and Marks and Spencers teacakes are however charged at a tax free rate, raising the debate of why people who menstruate are being fined for having their period? In 1973 the UK first introduced VAT with a standard rate of 10% tax when it joined the European Economic Community. Over the years the standard tax rate has fluctuated, but in 2001 Labour moved sanitary products onto the reduced rate of 5% after a campaign took the debate to parliament.

In 2015, 320,000 people signed a petition to scrap the tampon tax altogether and the following year this amendment was agreed by parliament to finally put an end to the tampon tax. The petition was started by university student Laura Coryton, who described the tax as “illogical and sexist”. But EU law prohibits any Member State from applying a new zero tax rate, and so the tampon tax will still remain as long as we are a part of the EU. After the news came out that it wasn’t possible for the UK government to remove the tax on tampons, pads and other sanitary products, Chancellor George Osborne promised to use the revenue from the tampon tax to fund women’s charities across the UK and put the money to good use.

Last year the Minister for Sport and civil Society, Tracey Crouch, announced that the £15 million from the latest round of tampon tax would be donated to organisations that tackles domestic violence and rape, helping thousands of women and girls across the UK. In a press release published in March 2017 by the government, Tracey Crouch said, “The money generated from sanitary products is being invested in good causes that tackle the serious issues that women of all ages face. It will be used to support vulnerable women and girls and help build a Britain fit for the future.” It was also announced that from 2015 up until the tampon tax fund announced last year, the funding all together from the tampon tax has totalled £47 million, which over 70 charities are still receiving grants from.

Will it ever be scrapped?

In a statement from the Department for Digital, Culture, Media and Sport it was revealed that the government is committed to continuing the fund built from the tampon tax until they are able to apply a zero rate of VAT to all menstruation products. With current EU laws prohibiting this from happening, the fund will continue, but with Brexit on the horizon the zero rate tax on sanitary products could finally be applied in order to end tampon tax for good.

Major brands are helping its customers afford sanitary products while the 5% tax is still in place, by fronting the cost themselves in a bid to help tackle period poverty. In July 2017, Tesco announced that it will be cutting the prices of over 100 menstrual products stocked in its stores in order to front the tampon tax for its customers. Waitrose, Morrison and Co-op followed in the footsteps led by Tesco, also fronting the cost of the 5% tax of its menstruation products.