Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to (a) remove and (b) reduce VAT on essential healthcare products.
VAT rules do not distinguish between supplies on the basis of whether they might be considered essential. VAT is a broad-based tax on consumption, and the twenty per cent standard rate applies across a very broad range of goods and services. While there are exceptions to the standard rate, these are strictly limited by legal and fiscal considerations. One such exception is that medicines on the NHS prescription list are zero-rated for VAT when dispensed by a pharmacist.
Removing or reducing VAT on a broad range of healthcare products would likely come at a significant cost to the Exchequer, and with no guarantee that it would reduce the cost to consumers of the products themselves. While all taxes are kept under review, the Government has no current plans to make changes here.