United Kingdom: Ministers Debate Dropping VAT on Condoms to Encourage Safer Sex

The British government has been accused of "taxing sex" and discouraging safer sex by charging a 17.5 percent value added tax (VAT) on condoms. Because they are designated as "luxury" items, condoms incur the highest rate of VAT. Now, health ministers are in talks with the Treasury about dropping the VAT on condoms. About 30p (55 cents US) from each £1.99 ($3.65 US) three-pack of condoms goes to the Treasury.

"We will consider the Department of Health's point of view and actively engage with them. It's not something that ministers will take lightly," said a Treasury spokesperson.

The chancellor has the option to apply a 5 percent tariff on a range of items approved by the European Union, including condoms. Completely eliminating the VAT on condoms would require a new EU directive. Treasury has said it will lobby for reduced VAT in four areas in EU negotiations later this year, but condoms are not now on the list.

In October, the government-commissioned Independent Advisory Group on Sexual Health and HIV called for the VAT on condoms to be lifted and for more free condoms to be made available through the National Health Service (NHS). The advisory group's chairperson, Baroness Joyce Gould, said the high price of condoms means some people at risk, especially youths, do not always use them. "The price of condoms is prohibitively high. They are certainly not a luxury; they are a health necessity," she said.

Last year, NHS gave away 38 million condoms at a cost of about £4.3 million ($7.9 million U.S.). It is up to individual general practitioners to decide whether to distribute free condoms or refer customers to drug stores.

The retailer Superdrug last week launched an online petition calling for the end of VAT on condoms, and it cut their cost by 17.5 percent for the duration of the campaign.

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