The Treasury is to give the money to charity in lieu of the tax taken from sales of Wherever You Are, which is on course to be the Christmas number one this weekend .
Choir member Sarah Wall said it was a “brilliant” gesture.
Chancellor George Osborne confirmed the tax would be waived after a request from Conservative MP Oliver Colvile called for the tax to be waived.
The single – which will raise money for forces’ charities – is a soaring success, and chalked up the biggest two-day sale for six years, according to figures released on Tuesday. It is outselling nearest rival Cannonball by the X Factor winners by a margin of six to one.
The Military Wives were formed by Gareth Malone for BBC2 programme The Choir, which climaxed with the group performing at the Festival of Remembrance at the Royal Albert Hall.
Their single sold 242,000 copies in just two days and could hit the half-million mark by the end of the week.
Mr Osborne said: “Our armed forces demonstrate incredible commitment to the nation and make sacrifices for all of us.
“The Military Wives choir is doing a great job of raising money for this hugely worthy cause. We will donate the tax collected on the single so that as much as possible of the money spent by the public on this fantastic song goes to charities helping our armed forces and their families this Christmas.”
Proceeds from the single are being donated to the Royal British Legion and the Soldiers, Sailors, Airmen and Families Association.
Belfast Telegraph