The ongoing campaign by M&S to remove VAT from period pants marks a significant move, as the government considers a tax review.
- Currently, the government still imposes a 20% VAT on period pants, classifying them as garments.
- M&S and WUKA have been actively campaigning for tax exemption similar to disposable period products.
- Current exclusions apply only to products for girls under 14, leaving a gap in the broader market need.
- Retailers like Tesco and Sainsbury’s have joined the effort, promising to cover VAT costs for consumers.
The ‘Say Pants to the Tax’ initiative spearheaded by M&S is gaining traction. For the first time, the government is re-evaluating the tax status of period pants, which are currently subjected to a 20% VAT as they are categorized under garments. This contrasts with disposable period items like pads and tampons, which are not taxed.
For weeks now, M&S, along with WUKA, has been lobbying for the removal of this tax. Their argument centers on the seeming disparity in tax treatment between reusable and disposable menstrual products, advocating for similar exemptions to enhance affordability and accessibility.
The government’s stance on the matter remains cautious. They have suggested that under existing regulations, period pants can already qualify for a zero rate, but only in very limited cases—specifically for young girls below 14. This regulatory limitation excludes a large percentage of the population that relies on these products.
In response to the impasse, M&S has taken a proactive step by absorbing the VAT cost across their range of period pants, effectively offering these products at a reduced price equivalent to tax-free status. This bold move has set a precedent within the retail industry, encouraging other retailers to follow suit.
Recently, Tesco reduced its F&F period pants’ price, cushioning consumers from the VAT effects by similarly absorbing the tax costs. A few days ago, Sainsbury’s announced their alignment with the movement, committing to reflecting any governmental tax reductions in their pricing strategy.
The collaborative effort among retailers is poised to influence government policy on period pants tax regulation.
