Tampon tax 'set to be scrapped' in Brussels VAT deal

The Chancellor has revealed that a deal with Brussels could bring in the end of the so-called "tampon tax" in the UK.

George Osborne said he expected an announcement in "the next few days" that the UK will be able to end VAT on women's sanitary products.

The move comes as the government is facing a Commons revolt by Tory MPs demanding it acts unilaterally to withdraw the charge - in defiance of EU rules.

Last year, the government vowed to tackle the levy after after a UK campaign gathered 250,000 signatures on a petition demanding that the items are no taxed as "luxuries".

Other campaigns have taken place in France and Canada.

A logo from a Canadian campaign. Credit: Change.org

A number of Conservative MPs are 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.

"I perfectly understand people's anger at paying the tampon tax," he told the BBC Radio 4 Today programme.

"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."

The move is in part driven by a determination by pro-Brexit MPs to embarrass the government over the role of the EU in setting VAT.