Sanitary products are subject to the 5% reduced rate of VAT, the lowest rate permitted under current EU VAT rules. Until the UK leaves the EU, we remain a full member with all of the rights and obligations that membership entails. Finance Act 2016 included legislation to introduce a zero rate of VAT for sanitary products at the earliest opportunity.
HMRC estimates that VAT receipts from the sale of sanitary products are approximately £15m in each of the last five years. In 2015, the Government announced a new fund awarding an equivalent £15 million a year to projects that improve the lives of vulnerable and disadvantaged women and girls. Since 2016, over eighty charities have received grants totalling £47 million from this Tampon Tax Fund.