An important victory for national sovereignty has gone largely unnoticed. Perhaps because the European Union bureaucracy is too worried about the coming referendum when Britain will decide to Remain in or Brexit the EU, the eurocracy finally bowed to a British demand. It seems the Brussels regulators regard women's sanitary products as a luxury good, and therefore impose VAT of 5 percent on such products. British authorities, who unlike EU bureaucrats must some day face an electorate that includes more than a few women who believe the sanitary products they use should not be classified as luxuries and subjected to what has come to be called the Tampon Tax, have long sought to have it repealed. But Britain, being a member of the EU, requires permission from Brussels for such deference to its citizenry.
Which permission has now been granted. As reported in The Week, Chancellor of the Exchequer George Osborne "said the EU had now given the UK leeway to set a zero rate, and the Government subsequently confirmed that it would not oppose a Labour amendment to the Finance Bill calling for the zero rate." For the uninitiated, a zero rate is not the same as an exemption. Zero-rated goods remain subject to VAT, but the rate levied is zero. VAT charged on the expenses of producing such goods can be claimed back, whereas VAT charged on exempt goods cannot be. American fans of VAT, who believe it is so much simpler than income taxes that it can lead to an end of the hated IRS, and vacant offices on K Street, are referred to Her Majesty's Revenue and Customs (HMRC) for further clarification.
It is no coincidence that the EU bow to British desires comes during the run-up to the referendum that will give British voters a choice between Brexit and the Remain party of big business, regulators and what one observer calls "the worthies", many of whom are "on the EU payroll" thanks to an elaborate system of grants from Brussels to key opinion-formers.