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<p>Under the current VAT rules, sun protection products are subject to the standard
rate of VAT. High-factor sunscreen is on the NHS prescription list for certain conditions
and therefore is provided VAT free when dispensed by a pharmacist.</p><p> </p><p>Expanding
the scope of current VAT reliefs would impose additional pressure on the public finances,
to which VAT makes a significant contribution. VAT raised around £130 billion in 2019-20
and helps to fund key spending priorities including on health, schools, and defence.
Any loss in tax revenue would have to be balanced by a reduction in public spending,
increased borrowing or increased taxation elsewhere. In addition, this request must
be viewed in the context of almost £50 billion of requests for relief from VAT received
since the EU referendum. Finally, it is never guaranteed that any reduction in tax
on a given item would be passed on by the manufacturers to the end consumer.</p><p>
</p><p>More widely, the Government is supporting the hardest hit with £37 billion
of help to address the cost of living and cutting hundreds of pounds off household
bills. Almost all of the eight million most vulnerable households across the UK will
receive support of at least £1,200 this year, including a new one-off £650 cost of
living payment. This intervention will substantially ease the burden on families in
the face of high inflation.</p><p> </p><p>Although the Government keep all taxes under
review, there are currently no plans to reduce or remove VAT on sunscreen products.</p>
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