- By Hannah Miller
- Political correspondent
November 20, 2023, 16:58 GMT
Updated 36 minutes ago
Image source: Getty Images
The tax on period trousers will be scrapped in the Autumn Statement, the BBC has been told.
On Wednesday the Chancellor is expected to announce that underwear – which is absorbent, washable and reusable – will be “rate-exempt” and no longer subject to VAT from January.
Other period products such as pads and tampons have been exempt since 2021.
A campaign by retailers, women’s groups and environmentalists follows.
Period pants are becoming increasingly popular as customers look for sustainable alternatives to disposable products. However, campaigners say abolishing VAT on underwear would make them more affordable.
In 2021, the government abolished the so-called “tampon tax” on period products such as sanitary pads and menstrual cups. However, period pants were considered “pieces of clothing” and therefore were not covered by the change in the law.
Currently, 20% VAT is charged on most products, except for some items such as most food, books and children’s clothing.
Retailers including Marks & Spencer and the Wuka brand were among around 50 signatories to a letter to the Treasury in August calling on the government to scrap VAT on period trousers.
In the letter, they committed to passing on any tax cuts directly to customers “so that they can immediately feel the benefit of the cost savings.”
The letter goes on to say that period pants “have the power to reduce plastic pollution and waste” and could save people money in the long run, but also added that “one of the main barriers to switching to period pants is cost.”
Marks & Spencer has estimated that the cost of the VAT exemption for a UK household on an average income would be 55p a year – about the price of a pint of milk.
Former sports minister Tracey Crouch said: “No one should be taxed no matter what period product they choose.”
SNP home affairs spokeswoman Alison Thewliss said: “The Chancellor has already accepted the logic of abolishing VAT on sanitary products, so it is only right that he extends this VAT cut to period trousers. They are essential for many women and girls.”
Over the last 20 years, period underwear has become increasingly common and is now sold by major retail brands such as Tesco, Sainsbury’s, Primark and Next.
The panties have a highly absorbent lining and can be used instead of sanitary pads or tampons. They can be washed and reused many times like regular pants.
The move is expected to be confirmed in Wednesday’s autumn statement, in which the government sets out its tax and spending plans for the coming year.