GS 3 – Economy
- Not an actual tax, but a form of gender-based price discrimination.
- Women pay more than men for similar products or services marketed specifically for them.
- Common examples:
- Haircuts and salon services.
- Personal care products like deodorants and moisturisers.
- Clothing and accessories.
- Toys and children’s products.
Companies profit from higher prices without paying extra taxes to the government.
Global Impact
- Origin: Term first used in California, 1994.
- U.S. Studies:
- Women’s personal care products cost ~13% more.
- Clothing and accessories cost 7-8% more.
- Dry cleaning for women’s shirts nearly double the cost of men’s.
- U.K.: Women’s toiletries often priced higher than men’s.
- UN Stand: United Nations urges countries to end gender-based pricing to promote economic equality.
Pink Tax in India
- Awareness: 67% of Indians are unaware of Pink Tax.
- Government Action:
- 2018: GST exemption for sanitary napkins and tampons, lowering their cost.
- No specific law yet banning Pink Tax completely.
- Consumer Protection:
- National Consumer Disputes Redressal Commission (NCDRC) directs companies to avoid unfair pricing, but enforcement is limited.
How Consumers Can Avoid Pink Tax
- Choose gender-neutral or men’s products.
- Compare prices per unit instead of packaging.
- Opt for unisex services in salons.
- Use online platforms to compare prices.
- Support gender-neutral brands and advocacy groups.
Legal & Social Measures Needed
- Public Awareness Campaigns to educate consumers.
- Policy Reforms to ensure fair pricing.
- Market Pressure: Informed consumers can push companies towards gender-neutral pricing.
- Consumer Courts: Continue to enforce fair trade practices.