Perth underwear firm reduces prices after tax cut

A Perth underwear company has welcomed the government’s decision to scrap tax on period pants.

Chancellor Jeremy Hunt announced the underwear – which is absorbent, washable and reusable – would no longer be subject to value added tax (VAT) from January.

Other period products such as pads and tampons have been exempt since 2021.

The chancellor’s move comes after a lengthy campaign from businesses and women’s groups.

Tax on period pants to be scrapped

Kirsty Lunn, who runs Perth underwear manufacturer Molke, said the move was “fantastic” but “long overdue”.

Kirsty said: “Period pants should be put in the same category as other menstrual products such as tampons, pads, and menstrual cups, which had VAT removed in 2021.

“It’s important for consumers to know that there are a variety of options available for period products, and choosing sustainable options shouldn’t mean having to pay more.”

She hopes that by removing VAT, period pants become a more accessible option.

“It’s been shown that cost is a barrier to people switching to period pants,” she said.

“People are becoming increasingly conscious of our impact on the planet and are actively seeking more sustainable alternatives.

“Single-use menstrual products are a major contributor to plastic pollution, and we should encourage any efforts that help reduce such waste in our society.”

Cutting prices despite ‘difficult year’

She said Molke would be reducing the price of its period pants by 20% to reflect the tax cut.

Kirsty added it has been a difficult year for the business, which is based in Scone.

She said: “People are feeling the pinch and as a business we are feeling this too.

“Although Covid was a difficult time, the cost-of-living crisis is hitting us hard with costs continuing to rise.

“As a small independent business, this is a challenge but one that we are rising to.

“We’re listening to our customers with exciting new products and designs for 2024.”

She said supporting independent retailers was “more important than ever” particularly around Black Friday, which takes place this week.