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'Tampon tax' set to be scrapped in EU VAT deal, says Osborne 'Tampon tax' set to be scrapped in EU VAT deal, says Osborne
(35 minutes later)
Britain is about to secure a deal with the European Commission allowing it to scrap the so-called "tampon tax", the government has said.Britain is about to secure a deal with the European Commission allowing it to scrap the so-called "tampon tax", the government has said.
VAT is currently charged at 5% on sanitary products, the lowest rate allowable under EU law.VAT is currently charged at 5% on sanitary products, the lowest rate allowable under EU law.
Chancellor George Osborne said he hoped to announce it would be scrapped altogether "in the next few days".Chancellor George Osborne said he hoped to announce it would be scrapped altogether "in the next few days".
He is under pressure from Eurosceptic Conservatives who want him to defy the EU and act unilaterally to scrap it.He is under pressure from Eurosceptic Conservatives who want him to defy the EU and act unilaterally to scrap it.
More than 300,000 people have signed a petition calling for sanitary items to be exempted from tax altogether.More than 300,000 people have signed a petition calling for sanitary items to be exempted from tax altogether.
In his Budget on Wednesday, Mr Osborne said the proceeds of the tax would be distributed among women's organisations.In his Budget on Wednesday, Mr Osborne said the proceeds of the tax would be distributed among women's organisations.
'Good progress'
But he is facing calls to ignore EU rules, with a number of Conservative MPs threatening to vote for an amendment to the Finance Bill in the Commons on Tuesday to allow the zero-rating of women's sanitary products.But he is facing calls to ignore EU rules, with a number of Conservative MPs threatening to vote for an amendment to the Finance Bill in the Commons on Tuesday to allow the zero-rating of women's sanitary products.
Those campaigning for Britain to leave the EU in 23 June's referendum have been keen to highlight the role of Brussels in setting VAT rates.Those campaigning for Britain to leave the EU in 23 June's referendum have been keen to highlight the role of Brussels in setting VAT rates.
Conservative MP Anne-Marie Trevelyan said: "I fear it may just be a statement that the EU is going to look at how we do VAT within nations - which isn't good enough. This is something that needs to be sorted out."
Mr Osborne, who wants Britain to stay in the EU, told the BBC Radio 4 Today programme: "I perfectly understand people's anger at paying the tampon tax.Mr Osborne, who wants Britain to stay in the EU, told the BBC Radio 4 Today programme: "I perfectly understand people's anger at paying the tampon tax.
"I said we would get agreement that we could reduce this rate to zero. I think we are on the verge of getting that agreement. I think we are going to get that agreement in the next few days, we hope.""I said we would get agreement that we could reduce this rate to zero. I think we are on the verge of getting that agreement. I think we are going to get that agreement in the next few days, we hope."
Prime Minister David Cameron has raised the issue at the European level and may raise it "in the margins" of a summit he is attending in Brussels, Downing Street said.
The PM's official spokeswoman said it was "an opportunity to engage on issues that matter to us".
Labour MP Paula Sheriff has, meanwhile, tabled an amendment to the Finance Bill that would scrap the so-called "tampon tax". Labour will back the motion, which it said was attracting cross-party support.Labour MP Paula Sheriff has, meanwhile, tabled an amendment to the Finance Bill that would scrap the so-called "tampon tax". Labour will back the motion, which it said was attracting cross-party support.
She said: "Women's sanitary products are not a luxury. George Osborne failed to take the opportunity in his Budget to say that he would take the action called for by Labour and feminist campaigners and seek to get the 'Tampon Tax' abolished.She said: "Women's sanitary products are not a luxury. George Osborne failed to take the opportunity in his Budget to say that he would take the action called for by Labour and feminist campaigners and seek to get the 'Tampon Tax' abolished.
"But we now know that the European Commission is on the verge of offering the opportunity to do just that. George Osborne should work with Labour MEPs and other EU member states to ensure that this unfair tax is abolished once and for all.""But we now know that the European Commission is on the verge of offering the opportunity to do just that. George Osborne should work with Labour MEPs and other EU member states to ensure that this unfair tax is abolished once and for all."