Labour hits out at ‘ mask tax’ as VAT reimposed for buyers

LABOUR has hit out at the Treasury’s decision to allow the temporary suspension of VAT on personal protective equipment ( PPE) to expire, calling the move “unbelievable”.

The Treasury cut VAT on PPE to zero per cent in May, with the reduction applying to items such as face masks and aprons purchased by care homes, businesses, charities and individuals to protect against the virus.

It was initially due to return to 20 per cent in August, but was extended until October 31 at an estimated cost of around £ 255m for the six- month period.

Labour says the Treasury has confirmed the suspension will not be extended, with Shadow Financial Secretary to the Treasury James Murray calling the decision “the last thing” families need.

He said: “It’s unbelievable that the Government wants to introduce a mask tax in the middle of a pandemic.

“With Covid cases on the rise across the country, the Government should be doing all it can to help people follow its own guidance to wear a mask, not ramping up the cost of buying one.

“Families across the country are already struggling financially as a result of the crisis. The last thing they need is to be penalised for doing the right thing.”

But the Government defended the move and argued that the VAT holiday on PPE had served its purpose.

The Prime Minister’s official spokesman said: “It is probably worth me setting out what the VAT relief on PPE was designed to do, and that was to accelerate supply to the health and social care sectors when supply did not match demand earlier this year.

“What it did was save them around £ 200m when they needed it.”