Pink Tax in India: A Guide for Women Taxpayers

Around the world, women have to bear the burden of pink tax, an unofficial premium levied on specific goods and services they use. It is not a tax that the government solely levies on women; rather, it symbolises discrimination against them by requiring them to pay higher taxes than men. Let us explore the history of this tax and the wider effects it has on women.

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Table of Contents

• What is Pink Tax in India?

• Examples of Products Subjected to Pink Tax

• Impact of Pink Tax on Women in India

• Pink Tax Paid by Women

• Conclusion

• Frequently Asked Questions

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What is Pink Tax in India?

In India, there are no regulations addressing the "pink tax" or any legal restrictions on the pricing practice it fosters. Demand and market dynamics have the most effects on the price of products and services aimed at women. Although research on the pink tax in India is not widespread, surveys have discovered considerable pricing variations between products marketed to both genders. According to research by the New York State Department of Consumer Affairs, products marketed to women were priced 7% higher than those for males or gender-neutral products, with women's personal care products having a 13% price difference. Similar pricing disparities were witnessed in the UK, where women's facial moisturiser was priced at 34.28% more than men's and women's deodorant was 8.9% costlier.

Examples of Products Subjected to Pink Tax

Here are a few examples of pink tax paid by women in India:

• Clothing: Despite similar styles and materials, women's clothing is typically more costly than men's. Particularly for formal attire and accessories, this is accurate.

• Personal Care Products: Products geared to women, such as shampoo, conditioner, and razors, are frequently more expensive than comparable goods for males. For example, although men's and women's razors have the same function, women's razors may cost more.

• Healthcare: For women, some medical services, such as those pertaining to reproductive health or cosmetic surgeries, may be more expensive.

• Beauty Products: Although the components and quality of women's beauty products, such as skincare and makeup, are similar to those of males, they are sometimes more expensive.

Impact of Pink Tax on Women in India

The gender pay gap is still a problem even though there are more women in leadership positions. The financial gap is exacerbated for women because they not only make less money but also have to pay more for goods and services. Women in India have less purchasing power as a result of the pink tax, which exacerbates gender-based pay disparity. Furthermore, women are under pressure to meet certain standards of attractiveness due to the reinforcement of these norms via rising pricing. Feelings of loneliness, worry, and sadness might result from not living up to these expectations.

Pink Tax Paid by Women

According to studies, women may have financial, physical, and practical repercussions from gender-based price discrimination. For every dollar earned, women make around 20% less than men, according to data from the Economic Policy Institute. According to other studies, women frequently pay more than men do on necessities like housing, clothes, and healthcare—areas where the pink tax is common. Products marketed to women typically cost 13% more than similar ones for males, according to a New York research on the pink tax. Particularly when essentials like feminine hygiene products are taxed as luxury goods, this discrepancy can have a substantial financial impact. Just 23% of people in India are aware of what the "pink tax" is or how it affects the economy.

For example, tampons are taxed at 12–14% under GST and classified as luxury goods, yet male contraceptives are frequently exempt from taxes since they are considered essential. The pink tax is a result of social norms that hold women to higher standards for behaviour and appearance. Women are indoctrinated from an early age to place a larger priority on spending money on makeup, personal care, clothing, and transportation, which results in higher costs than men. Even if fewer people use menstrual products, the pink tax on these necessities is still a major problem. Addressing this unjust financial burden requires increasing awareness. The sanitary pad tax in India was known as Lahu ka Lagaan, or "blood tax." The announcement by temporary finance minister Piyush Goyal that sanitary pads would be completely tax-free after a successful campaign was hailed as a victory for women.

Conclusion

The pink tax is not a real concept, but it shows gender disparity and discrimination against women by burdening them with extra taxes on the products they need. Numerous countries throughout the world have taken action to combat the pink tax and lower the cost of necessities for women. India's position on the matter is still unknown, though. There is an urgent need to raise awareness about the pink tax to nurture equality between genders.

Frequently Asked Questions

What is the history of Pink Tax?

Although the term "pink tax" has been around for a while, it was first used in California in 1994. It came into being after it was discovered that companies in different cities routinely charged women more for goods and services than men.

Is the Pink Tax real?

No, the pink tax on women's goods is not enforced by governments. This phrase refers to the higher price that certain businesses charge for goods marketed to women as opposed to comparable goods offered to males. When businesses charge more for pink (female) products than blue (male) ones, the extra money goes to the businesses rather than the government.

What is the impact of the Pink Tax on the fashion industry?

A survey conducted by Businessoffashion.com found seventeen cases in which the cost of clothing in the same style differed for men and women. These incidents were seen in the online stores of well-known labels like Alexander Wang, Gucci, Dolce & Gabbana, Saint Laurent, Valentino, and Balmain. The women's version was typically more expensive, sometimes costing up to $1,000 more

Is Pink tax legal in India?

In India, the government does not impose the pink tax. It is an additional fee that businesses charge women for goods and services.

What is the gender tax in India?

The unofficial and discriminatory norm of raising prices for goods and services promoted to women is known as the "gender tax," or "pink tax." Women are forced to pay more than men for comparable or identical goods because of this markup.

Is there any tax limit for women in India?

In India, there is no upper limit on the pink tax. There are different degrees of price discrepancy since market trends and demand have a major impact on the cost of goods and services targeted to women.

What is the Pink tax and Blue tax?

These taxes demonstrate the pervasiveness of gender discrimination. When a business charges more for a product designed for women, like pink razors, than for a comparable product made for men, such blue razors, this is known as the "pink tax." Women pay more, despite the fact that they are equal. When men are taxed more than women for particular items, such as club cover fees, this is known as the "blue tax." The necessity for equality for all people, regardless of gender, is highlighted by these discriminatory actions.

How does the pink tax affect women’s spending habits over time in India?

The pink tax causes women to pay more for everyday essentials like personal care, clothing, and healthcare, leading to a significant cumulative financial burden over their lifetime—despite earning, on average, less than men.

Which product categories in India show the highest pink tax markup?

Personal care items (like razors and deodorants), clothing, salon services, and healthcare products for women consistently show the highest price disparities compared to similar men’s products, with markups sometimes exceeding 10–30%.

How do packaging and marketing contribute to the pink tax?

Companies often justify higher prices for women’s products by using gendered packaging, fragrances, and “special” features, even when the core product is identical to the men’s version, resulting in unnecessary extra costs for women.

Are there any Indian laws or regulations that address the pink tax?

Currently, there are no specific laws in India prohibiting gender-based pricing; pricing is left to market forces, and companies are not penalized for charging more for products marketed to women.

Has there been any successful activism or policy change against the pink tax in India?

Public campaigns led to the removal of GST on sanitary pads in 2018, but most other pink tax issues remain unregulated, highlighting the need for continued consumer advocacy and awareness.

How does the pink tax impact women’s access to essential healthcare and hygiene products?

Higher prices for products like sanitary napkins, birth control, and hormone medications can limit access for low-income women, affecting their health and well-being, especially in rural or marginalized communities.

Are there any financial services in India where women pay more due to the pink tax?

Yes, women sometimes face higher interest rates on loans and insurance premiums, justified by outdated risk assessments or gender stereotypes, even when their financial behavior is equal or better than men’s.

What role can consumers play in combating the pink tax in India?

Consumers can demand price transparency, support brands with gender-neutral pricing, and raise

awareness through social media and advocacy, pressuring companies to correct unfair pricing practices.

How do international studies on the pink tax compare to the Indian context?

Research in the US and UK shows women’s products are priced 7–13% higher on average; Indian surveys reveal similar trends, though the issue is less researched and publicized, making local awareness even more crucial.

What steps can brands and policymakers take to reduce the pink tax in India?

Brands can standardize pricing for similar products regardless of gender, and policymakers can introduce guidelines or incentives for gender-neutral pricing—while consumer education remains key to driving change.