PPE tax cut extension to benefit mobility sector as £15bn spend highlights scale of the pandemic
The scrapping of VAT on personal protective equipment (PPE) has been extended until the end of October as it is revealed that the government has spent £15 billion on the vital equipment since March.
The decision to extend comes after a temporary zero-rate of VAT was applied to PPE sales for an initial three months from the 1st of May 2020 to 31st of July 2020.
Since the outbreak in March, demand for PPE has skyrocketed, leading to multiple mobility retailers in the sector moving into the sale of PPE including masks, visors, gloves and more to care homes, charities and private customers.
In addition, companies in the sector, particularly those working in customers’ homes to perform assessments or installations such as stairlift firms and community equipment providers, have also been purchasing the personal protective equipment to protect their staff and customers.
Financial Secretary to the Treasury Jesse Norman said: “Extending the zero VAT rate on PPE will provide the relief needed by care homes in particular, so that as many people as possible continue to be protected against the coronavirus.”
Due to the extension, the zero-rate will apply for six months in total with consumers including care homes, home care providers and businesses estimated to save an additional £155 million.
Ministers had also previously removed import duties from PPE and medical supplies intended to assist with the response to the coronavirus pandemic in April 2020 to ensure more essential equipment can get to the front line quicker.
The extension, announced on the 3rd of July, has been followed by the revelation on the 7th of July that the government allocated an additional £15 billion for the purchase of PPE since March.
Commentators have suggested the figure highlights both the extent of the health crisis that faces the country and the lack of PPE supplies available in March.
Yesterday, the government set out its next steps for economic recovery, detailing a three-point plan to support, create and protect jobs.
