Pink Tax

Context

The article explains the concept of Pink Tax—a form of gender-based price discrimination where products or services marketed towards women are priced higher than similar items for men.

UPSC Relevance:

Tax System and Key terms.

UPSC PYQ:

Q.Consider the following items: (2018) 

1. Cereal grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material

Which of the above items is/are exempted under GST (Good and Services Tax)? 

(a) 1 only 

(b) 2 and 3 only 

(c) 1, 2 and 4 only 

(d) 1, 2, 3 and 4 

Q. Consider the following: (2023)

1. Demographic performance 
2. Forest and ecology 
3. Governance reforms 
4. Stable government 
5. Tax and fiscal efforts 

For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance? 

(a) Only two 

(b) Only three 

(c) Only four 

(d) All five 

About Pink Tax:

• Pink tax is neither a real tax, nor is it a government imposed fee.
• It’s just a pricing phenomenon wherein women pay more for buying a product exclusively made for them or enjoying a service tailor-made for them.
• As there is no out right ban on pink tax, firms reap benefits by pocketing extra revenue generated out of selling the items, without contributing to government’s coffers.

History:

• The term “Pink Tax” is be lieved to have originated in the U.S. in California in 1994. As per a study done in the U.S., personal care products targeting women were 13% costlier than men’s. Further, women’s accessories and adult clothing were 7% and 8% more expensive.

Pink Tax in India:

• The problem of Pink Taxis yet to bother most Indian families.
• ‘The Gender Tax: Assessing the Economic Toll on Women,’ almost 67% of Indian individuals have never heard of the Pink Tax.
• In July 2018, the Union Government exempted sanitary napkins and tam pons from the Goods and Services Tax (GST). Prior to this rule, these hygiene items were levied 12% GST. Probably, this was the time when Indian women took notice of this gender-based disparity in pricing.