Prime Minister David Cameron receives EU support to abolish the tampon tax

Caitlin Morrison
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A new deal gives the UK flexibility to reduce VAT on sanitary products (Source: Getty)

Prime Minister David Cameron has secured the support of other EU leaders to pave the way for the UK to abolish the so-called "tampon tax", according to officials.

A deal between the UK and the EU would give the government flexibility to remove the current five per cent VAT rate on sanitary products, replacing it with a zero rate of tax.

The move will appease backbench, eurosceptic MPs who were threatening a rebellion over the levy.

In yesterday's Budget, chancellor George Osborne again pledged to spend the proceeds of the tampon tax on women's charities.

However, Osborne today said that a deal with the EU was close to being reached.

"I perfectly understand people's anger at paying the tampon tax. I said we would get agreement that we could reduce this rate to zero. I think we are on the verge of getting that agreement. I think we are going to get that agreement in the next few days, we hope," he told he told the BBC's Radio 4 Today programme.

Following a campaign to end the tax last year, the chancellor had deferred a decision on scrapping it to Europe.

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