Tesco becomes first UK retailer to cover the cost of VAT on tampons

Tesco has today announced it will reduce the price of women’s sanitary products in a bid to make them more affordable for customers.

The initiative, spearheaded by BBH London, will see a five per cent reduction in price to cover the cost of the so-called ‘Tampon Tax’ or VAT on the items ahead of Government proposals to remove the VAT. It will apply to nearly 100 Tesco own label and branded products in the range.

Tesco previously committed to passing on the five per cent saving to customers when the Government’s proposed removal of VAT came into force, but has acted now in order to help customers with their regular shop.

The approach is being promoted in store and across social media with a 30 second online film, co-created by Tesco and BBH London.

Speaking about the price reduction, Michelle McEttrick, Group Brand Director at Tesco said: “For many of our customers, tampons and sanitary towels are essentials products. However, the cost of buying them every month can add up, and for many women and girls it can be a real struggle on top of other essential items. That’s why – as a little help for our customers – we are reducing the cost of these products by five per cent.”

In October 2015 the Government confirmed it would seek a change in EU law to allow any rate of VAT to be applied to sanitary protection, as part of a review of EU VAT rates to be undertaken by the European Commission in 2016.

In March 2016 the European Council confirmed that the Commission’s initiative would “include proposals for increased flexibility for Member States with respect to reduced rates of VAT, which would provide the option to Member States of VAT zero rating for sanitary products.”

Links

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2015-11-18/16882

http://www.consilium.europa.eu/en/press/press-releases/2016/03/18-european-council-conclusions/

http://www.bartleboglehegarty.com/london/

https://www.tescoplc.com/news/news-releases/2017/tesco-to-cover-cost-of-vat-on-tampons/

 

 

  

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