Tesco, Sainsbury's, Asda and Morrisons pledge to pass on 'tampon tax' savings to customers

Tesco, Asda and Morrisons have all written to Labour MP Paula Sherriff to confirm that their prices would be reduced to reflect the removal of the tax.

Big four rival Sainsbury’s has also confirmed plans to follow suit, alongside upmarket grocer Waitrose and high street giant Boots.

It comes two months after the UK Government revealed that it was scrapping 5% VAT on women’s sanitary products. It won the backing of EU officials to let the UK set its own rules following a campaign led by Sherriff.

Prime Minister David Cameron unveiled the changes in a bid to quash a backbench rebellion of Euro-sceptic MPs who were disillusioned with EU rules that meant member states could not abolish VAT on selected products.

Following the UK campaign, Brussels has said it will allow zero tax on sanitary products, but there were fears the tax savings would not be passed on to consumers before the supermarket giants moved to allay those concerns.

Speaking to The Guardian, Sherriff said: “I’m delighted to have reached this agreement with Britain’s largest retailers that they will guarantee to pass on the tampon tax cut at the point of sale.

“It would be completely unacceptable if this measure just led to big businesses boosting their bottom line at the expense of women buying what are essential good.”

Morrisons head of policy and corporate affairs David Scott wrote in his letter to Sheriff: “This [reduction] is designed to directly benefit women and I am pleased to confirm that Morrisons will be passing the 5% reduction on to our customers when the relevant regulations come into force.”

Asda senior director for corporate affairs Chris Lowe added that scrapping the tax was a policy that the grocer had “long campaigned for and was the top action our Asda mums said they would like the Government to take”.