Sammy Wilson – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Sammy Wilson on 2014-06-24.

To ask Mr Chancellor of the Exchequer, how much has accrued to the Exchequer in VAT receipts from the sale of sanitary products in each of the last five years; and if he will review the applicability of such a tax with existing equality legislation.

Mr David Gauke

VAT receipts from the sale of sanitary products, subject to the reduced rate of VAT, are estimated to have been approximately £15m in each of the last five years.

VAT rules apply the standard rate of 20 per cent to most goods and services. While there are exceptions to this standard rate, these are strictly limited under EU VAT law.

One such exception is that female sanitary products can be subject to a reduced rate of VAT. Since 2001, the UK has therefore applied a 5 per cent reduced rate of VAT, the lowest permissible under EU law, to the supply of sanitary products.

The application of VAT in the EU, including rates and flexibilities afforded to member states in this regard, is governed by EU law. It means, for example that the Government cannot apply a zero rate tofemale sanitary products. That would require a change to EU VAT legislation, which would require a proposal from the European Commission and the unanimous agreement of all 28 member states.