HC Deb 03 April 1996 vol 275 cc257-8W
Ms Jowell

To ask the Chancellor of the Exchequer what was the estimated revenue generated from value added tax on sanitary products for women in each of the last four years; and what would be the estimated annual cost to the Treasury of reducing value added tax on sanitary products to the lowest permissible level. [22762]

Mr. Heathcoat-Amory

No actual figures are available on the revenue generated from value added tax on sanitary products for women; however, it is estimated to be of the order of £40 million annually. The estimated annual cost to the Treasury of reducing value added tax on sanitary products to 5 per cent. the lowest permissible level, is approximately £25 million.

Ms Jowell

To ask the Chancellor of the Exchequer what consideration his Department has given to reducing value added tax on sanitary products to a lower rate. [22763]

Mr. Heathcoat-Amory

Since the last Labour Government agreed with other EU member states in 1977 that the UK would not extend the scope of its existing zero rates, it is not possible to zero-rate these products. Member states may apply to them a reduced rate of not less than 5 per cent., but it remains Government policy not to have a reduced rate for anything except domestic fuel and power in the interests of having as simple a rate structure for the tax as possible.