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Govt ponders VAT exemption to cut Covid testing costs

Government
James Chapple
19 April 2021

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.

Senior Conservative MPs have called on health secretary Sajid Javid to take "immediate action to end rip-off" PCR test prices (Credit: Annie Spratt / Unsplash)

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.