Labour Youth welcome cut in VAT on condoms as a step in the right direction

Issued : Thursday 31 January, 2008

Labour Youth today welcomed the provision in the finance bill just published by the government to reduce VAT on condoms from 21% to 13.5%. Labour Youth has led the campaign on this issue for several years.

In December to mark World Aids Day Labour Youth distributed free condoms with Proinsias De Rossa M.E.P. in Grafton Street to highlight this issue. In 2006 the Labour Youth budget submission highlighted the case for removing tax on safer sex. As recently as today Labour Youth members were distributing free condoms in UCD as part of the campaign.

Speaking on the Issue Labour Youth National Chairperson Enda Duffy said:
"This is a welcome initiative from the Government who have finally decided to act to reduce tax on safer sex. However it does not go far enough. Under EU regulations a VAT rate as low as 5% is permissible on contraception. It is deplorable that the government is still taxing safer sex at rate higher than required by the EU. The government also needs to increase the supply of free contraception to target groups including young people and students.

"We are calling on condom vendors to pass on the cut in VAT directly onto consumers. Anything else will amount to gross and ruthless profiteering at the expense of people's sexual health. The government needs to take firm action against any companies or vendors that fail to pass on the VAT cut."