Chancellor Alistair Darling has announced that he will refund tax on sales of The X Factor Finalists' single, 'Hero', which is being released in aid of Help for Heroes, which provides support for wounded servicemen and women, and the Royal British Legion's Poppy Appeal.
Darling told BBC News: "I support the efforts being made by the X Factor contestants. In recognition of that, I'm proposing effectively to waive the VAT on the sale of these singles".
The single, which went on sale this week, is selling fast and is expected to shift over 300,000 units by Sunday. HMV spokesman Gennaro Castaldo said: "This is proving to be one of the biggest single releases for years, if not the decade. Only Leona Lewis's debut hit 'A Moment Like This', which sold over 500,000 copies in its first week, can compare. It's selling more than most Christmas number ones would, and HMV has placed an urgent order for more copies. 'Hero' has sold over 100,000 copies in its first two days alone, and the only thing that may hold back sales this week is whether the manufacturers can keep pace with the growing demand for the CD single, although the option to download is always there".