Tampon Tax

Tampon Tax

Subject: Economy

Section: Fiscal Policy 

What is Tampon Tax

• Tampon tax refers to consumption levies such as value-added tax (VAT) that most countries charge on items such as sanitary pads, tampons, panty liners and menstrual cups.

Which countries have abolished the tampon tax:

• Kenya became the first country to scrap VAT on sanitary pads and tampons in 2004,
• Among the latest countries to pass laws to abolish the tampon tax are Mexico, Britain and Namibia.
• Mainly in Europe, 17 countries have reduced the VAT on sanitary products, with Italy being the latest to do so this year.
• In 2022, Scotland became the first nation to make tampons and sanitary pads free and available at designated public places such as community centres, youth clubs and pharmacies.

Does India apply GST on menstrual products

• The Indian government in 2018 decided to abolish the tampon tax and decided to revoke the 12 percent tax levied on sanitary pads in an effort to make them accessible to menstrual hygiene products accessible to all.

Why are some countries unwilling to scrap tampon taxes:

• VAT is an important source of revenue for governments and the reason why many countries still have a tampon tax. In countries belonging to the Organisation for Economic Co-operation and Development (OECD), VAT revenue represented 6.7% of their gross domestic product (GDP) in 2020.
• VAT rates vary widely from country to country from 5% in Canada to up to 27% in Hungary and governments often have different definitions of what is considered an essential good that is exempted from the levy.

What Is the Pink Tax:

• It refers to the extra cost that women have to pay on products designed and marketed specifically to them, as compared to other generic or male equivalent same products. For e.g., most salons charge more for women’s haircut than men’s.