Tesco, Sainsbury's, Asda and Morrisons pledge to pass on Tampon Tax savings

All of Britain's 'big four' supermarkets and other major high street retailers have pledged they will pass on the full savings to customers when the so-called 'Tampon Tax' is finally removed.

Labour MP Paula Sherriff, who has campaigned vociferously against the five per cent VAT levy on sanitary products, says she has received assurances from Tesco, Sainsbury's, Asda and Morrisons, the four biggest supermarkets in the country, that they will pass on any savings in full. The big four's smaller rival Waitrose and the pharmaceuticals retailer Boots have both given similar assurances.

"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," said Sherriff. "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 goods."

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"I will be pressing some of the smaller chains to sign up to the same deal and for the manufacturers to recognise the cut in their recommended retail price. If for any reason we don't get full agreement to this voluntary deal, I am prepared to push the case for the finance bill to include powers to impose a windfall tax in future."

The Tampon Tax became a major political issue last year, as campaigners took issue with the application of VAT on what is an essential everyday item for women. European laws that prevented individual items being zero-rated for the tax prevented the government from scrapping the charge and led Chancellor George Osborne to pledge instead to hand the proceeds to women's charities.

But amid mounting pressure Brussels eventually caved in and David Cameron subsequently announced in March that the tax would be removed in full – although the government has yet to set out a timetable for the necessary legislation. Sherriff says she will table a further legal amendment to force the issue if it does not do so soon.

There has been concern that retailers would not pass on the cut. In France retail prices barely changed when VAT on sanitary products was reduced from 20 to 5.5 per cent, meaning that retailersessentially pocketed the difference.

Some have argued the issue is a political distraction and that the tax is so insignificant that it will not make much difference to consumers. At best women can hope to save "hundreds of pounds over the course of their lifetimes," notes The Guardian.