The government is reportedly considering a complete VAT exemption for all forms of Covid testing, a move that would likely cut test prices to below £50pp.
The Telegraph reports that in addition to exempting PCR tests from VAT when administered or overseen by a registered nurse, the Treasury is looking at whether to fully exempt all Covid tests from the tax charged at a rate of 20%.
It would mean the cheapest PCR tests currently available to the public, which currently range from £60pp to upwards of £100pp, could fall to below £50pp.
Testing will be a feature of all three categorisations of countries under the government’s new traffic light system for the resumption of international travel.
Those arriving from "green list" countries will have to take a pre-departure test and then a PCR test on day two of their return.
Those returning from "amber list" or "red list" countries will have to take a pre-departure test and tests on days two and eight of their mandatory 10-day self-isolation period.