What is Pink Tax in India

The pink tax refers to higher prices charged for products marketed to women compared to similar products for men. It is not a tax imposed by the government but a pricing practice that makes women pay more for the same items.

Does Pink Tax Exist in India?

No, the pink tax does not actually exist in India, as it is not an actual government-imposed tax. It refers to the higher prices charged by some companies for products marketed to women compared to similar products for men. The companies implement corporate pricing strategies that result in this price difference, and the additional cost paid by consumers goes to the companies, not the government. 

What is Pink Tax in India?

There are no specific government regulations regarding ‘Pink Tax’ as it is not imposed by the government. The market forces and consumer demand determines the prices of female-targeted goods and services in India.

Limited studies indicate noticeable price differences between products marketed to women and men. As per international studies, not only in India but countries including the United States and the United Kingdom, have found that prices of women-oriented products are often more compared to men’s or gender-neutral products.

Examples of Pink Tax

Some of the examples of Pink Tax are listed below:

Categories

Women Products that cost more than men’s

Personal care

Shampoos, conditioners, and razors

Clothing

Formal wear and accessories

Healthcare

Reproductive health and cosmetic procedures

Beauty products

Makeup and skincare

Impact of Pink Tax on Women

As per Pink Tax women pays more for certian gender-specific products compared to men. Here are more details about how much more women pays:

  1. Lower Earnings and Higher Costs: In India, women earn nearly 20% to 35% (approximately) less than men on average yet often face higher prices for similar goods and services.
  1. Increased expenses on essentials: Expenses on necessities such as healthcare, clothing, and housing—categories where pink tax pricing is common, is more for women.
  1. Price Markups: Studies show that products marketed to women cost about 13% more than comparable products for men, thereby increasing long-term financial burden.
  1. Limited Awareness in India: Long-term economic impact on women as only around 23% of Indians are aware of the pink tax.
  1. Unequal Tax Treatment: Essential women’s products, such as tampons were earlier taxed at 12% to 14% under GST, while comparable male products are often tax-exempt.
  1. Social expectations: The societal pressure on women to spend more on appearance-related products contributes to higher lifetime expenses.
  1. Menstrual Product Costs: Menstrual hygiene products have historically faced higher taxation, intensifying the pink tax burden, despite it being the most essential healthcare need of women.

FAQs on Pink Tax in India

  • Is the pink tax legal in India?

    Pink tax is levied by the government; it is just a pricing strategy incorporated by the companies depending on the demand for a particular product. But it is also not prohibited under India law, and hence it is legal in India.

  • Was the pink tax introduced by the government?

    No, the pink tax is not imposed by the government. It refers to higher prices charged by brands for products and services produced and marketed to women.

  • When was the term “pink tax” introduced?

    The term ‘Pink Tax’ was coined in 1994 in California after studies revealed consistent price differences for women-oriented products.

  • Is there a fixed tax or price limit for women in India?

    No, there is no specified limit for pink tax in India. The prices for products are driven by market trends and consumer demand.

  • Can women avoid the pink tax?

    Yes, women can avoid pink tax by choosing gender-neutral products. Women consumers must compare prices and support fair-pricing, and consumer advocacy initiatives can help reduce its impact.

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