M&S collaborates with WUKA in the ‘Say Pants to the Tax’ campaign, focusing on VAT review for period pants.
- The UK government is reconsidering the tax status of period pants, currently taxed as garments at 20%.
- Disposable period products are exempt from VAT, highlighting a disparity in the current tax system.
- M&S pledges to cover the VAT cost, with Tesco and Sainsbury’s joining the initiative.
- Retailers aim to align period pants with other tax-exempt period products since 2021.
The collaboration between M&S and WUKA in the ‘Say Pants to the Tax’ campaign has gained momentum, as they actively work towards prompting the government to reconsider the VAT imposed on period pants. This focus on VAT review marks a significant step as the government deliberates over the tax classifications that currently place period pants alongside garments, subjecting them to a 20% VAT.
There is a notable disparity in the taxation approach towards disposable and reusable period products. While disposable items such as pads and tampons enjoy a VAT-free status, period pants are not afforded the same relief. According to the government’s response, the existing rules potentially allow period pants to qualify for the zero rate but practical applications are limited to products designed for girls under the age of 14.
In response to this gap in policy, M&S has committed to shouldering the VAT costs across its period pants range, thereby reducing the financial burden on consumers. Last week, Tesco also embraced this movement by applying a 20% reduction on its F&F period pants range, effectively covering the VAT cost, aligning their pricing with tax-exempt products.
Sainsbury’s has joined the advocacy efforts, promising that any future VAT reductions on period pants will be directly passed to customers. These initiatives reflect a broader effort within the retail industry to achieve tax parity for period products, which have been VAT-exempt since 2021. The collective action of these retailers may influence further governmental reassessment regarding the tax status of period pants.
The collective efforts by retailers highlight an industry-wide push for equitable tax treatment of period pants, potentially influencing future governmental policy changes.
