Pink Tax in India – What is it and what products and services are covered under it?

The “pink tax” in India means women are charged more for gender-specific products, leading to higher prices compared to similar products for men. This adds to the economic strain on Indian women, who already earn about 35% less than men.

Pink Tax in India

In India, the pink tax denotes the additional charges imposed on women for products targeted at them, rendering these items pricier compared to similar ones for men.

Women in India face this economic burden, especially considering they earn approximately 35% less than men. In India, no specific laws against the pink tax result in price differences between products for women and men, driven by market dynamics

Products and Services comes under Pink Tax in India

In India, several product categories fall under the umbrella of the pink tax, highlighting the price disparity between similar items targeted towards women:

Personal Care Products:

• Razors: Women’s razors often carry a higher price tag than men’s razors, despite having similar blade quality and features.
• Deodorants and Body Washes: Products marketed towards women are frequently priced higher than their male counterparts, even when the ingredients and functionality are comparable.

Clothing:

• T-shirts and Jeans: Studies have shown that the base price for women’s t-shirts and jeans can be significantly higher than men’s clothing of similar quality and fabric. 
• This price difference can also extend to other clothing items like jackets and sweaters.

Salon Services:

• Haircuts and Hair Colouring: Salons often charge a premium for haircuts and hair colouring services offered to women compared to similar services provided to men.

Other Products:

• Toys: While not as prevalent, instances exist where toys marketed towards girls, such as dolls and toy kitchens, are priced higher than toys targeted towards boys.

Feminine Hygiene Products: 

• Previously, sanitary napkins and tampons were subjected to a 12% Goods and Services Tax (GST) in India, while condoms faced no such tax. 
• This distinction, rectified in 2018, serves as an example of how societal perception can influence product categorization and pricing.

Consequences of Pink Tax in India

The pink tax isn’t just an additional cost on specific products; it has far-reaching consequences for women in India:

Financial Burden:

• Women already face a gender pay gap, earning considerably less than men for the same work.
• The pink tax further strains their finances, limiting their purchasing power and potentially forcing them to compromise on essential items.

Reduced Access to Necessities:

• The historical example of GST on sanitary napkins demonstrates how the pink tax can restrict access to crucial hygiene products, impacting women’s health and well-being.

Perpetuates Gender Stereotypes:

• The pink tax reinforces the notion that women’s needs and preferences are inherently more expensive. 
• This fuels the societal belief that women’s appearance and beauty come at a premium.

Widens the Gender Economic Gap:

• The combined effect of the pink tax and the gender pay gap creates a significant financial disadvantage for women. 
• This disparity hinders their economic mobility and limits their ability to achieve financial independence.

Psychological Impact:

• The constant exposure to higher prices targeted solely towards women can lead to feelings of being unfairly priced for their gender. 
• This can contribute to feelings of frustration and social inequality.

Impact on Low-Income Households:

• The financial burden of the pink tax is particularly severe for women from underprivileged backgrounds. 
• Limited resources can force them to prioritise basic needs over essential hygiene products or personal care items.

Long-Term Financial Implications:

• The pink tax adds up over time, affecting women’s ability to save and invest. 
• This can have long-term consequences for their financial security, especially during retirement.

Persistent Challenges of Pink Tax in India

Combating the pink tax in India necessitates addressing several hurdles that hinder progress:

Limited Legal Framework: 

• Unlike some countries, India lacks specific legislation prohibiting gender-based price discrimination. 
• This absence makes it difficult to enforce fair pricing and hold businesses accountable for inflated prices on women’s products.

Data Challenges: 

• Quantifying the true extent of the pink tax is complex due to the dynamic nature of the issue. 
• Prices vary widely across different product categories, posing challenges for creating a robust system to collect and analyse data on price fluctuations.

Societal Perceptions: 

• Deep-rooted societal beliefs about gendered products and services significantly influence consumer choices. 
• Femininity-focused marketing justifies higher prices for women’s products, continuing the pink tax cycle.

Pricing Transparency: 

• The lack of clear price comparisons between similar products targeted towards different genders makes it difficult for consumers to identify instances of pink tax. 
• Price disparities are often masked as added “features” or targeted marketing tactics, complicating the identification of the true cost of the product.