Pink Tax: Examples, Definition, and Impact on Women’s Finances and Society
Last Updated : Oct. 13, 2023, 5:50 p.m.
When we talk about the Pink tax, we usually discuss the basic price difference between male and female customers for essentially the same goods and services. The pink tax can be seen in a variety of industries, including toys, personal care items, and clothes. For the same or a comparable item, women pay more than males.
In the field of economics, the phrase “pink tax” refers to pricing strategies employed by businesses or rules imposed by the government that raise the costs of transactions for women, frequently in the form of increased taxes or fees. The companies use the pricing technique known as price discrimination to boost their profits. Men and women regularly make the same everyday purchases without the prior concern about pink tax examples.
What Is The Pink Tax?
The term “pink tax” is regularly used to refer to price-based discrimination; the name stems from the erroneous belief that many of the products that are impacted are pink and targeted at female customers. The pink tax definition is the extra price that is added to goods that are expressly marketed to women and are more expensive than goods for men. In other words, it may also be considered a contributing factor to the underpayment of women.
Personal care products are one of the sectors where pink tax examples are most obvious. These include goods sold to both men and women, such as deodorants, soaps, lotions, and razor blades.
In a US government study, 800 gender-specific products from nearly 100 brands were analyzed. In the study, it was discovered that identical personal care products targeted to women often cost 13% more than those marketed to men.
Advocates have long pushed to cut or get rid of these taxes because they understand the hardship that is placed on women by understanding the pink tax examples, especially those with lower wages when it comes to purchasing tampons and other feminine sanitary products. Several countries, including Australia, Canada, India, and Rwanda, have abolished taxes on tampons and other feminine products.
How Much Pink Tax Will Women Pay?
According to studies, women may suffer practical, physical, and financial costs as a result of gender price discrimination. According to data from the Economic Policy Institute, women still earn around 20% less than men per dollar. Similar data from other studies demonstrates that women are likely to spend more than males in similar circumstances on needs like healthcare, clothing, and housing that come under pink tax examples.
According to a New York pink tax research, comparable men’s and women’s products cost 13% more on average. Therefore, it can have a major financial impact when things that are necessary for women (such as feminine hygiene products) are taxed as luxury goods. According to studies, only 23% of Indians are aware of the term “pink tax” or its relevant pink tax examples and how it affects the economy of the nation.
Male contraceptives were exempt from tax because they were considered to be required, whereas tampons were considered to be a luxury and were therefore subject to a 12–14% GST tax. The pink tax definition is founded on the truth that women are held to high standards in our culture for both their external appearance and internal behaviour.
Because women are socialized from a young age to act in certain ways or make certain decisions, they tend to spend more money than men do on things like clothing, transportation, personal hygiene, and makeup. This would not be a case of the pink tax because so little of the population uses menstrual sanitary products.
It is still important to be conscious of this punitive tax on necessities, though, as doing so will only make the pink tax’s unjustified financial burden worse. It was referred to as Lahu ka Lagaan in Hindi, which translates to “blood tax.” When announcing the campaign’s success, Indian interim finance minister Piyush Goyal said he was confident all mothers and sisters will be very glad to learn that sanitary pads are now 100% exempt from tax.
Pink Tax Examples
The following are pink tax examples in India:
- Personal Care Items: Women’s personal care items like shampoo, conditioner, and razors are frequently more expensive than equivalent items sold to men. For instance, even though they serve the same purpose, women’s and men’s razors could be more expensive.
- Clothing: Even for equivalent styles and materials, women’s clothing is frequently more expensive than men’s apparel. This is particularly valid for things like formal attire and accessories.
- Healthcare: Certain healthcare treatments, such as those related to reproductive health and aesthetic surgeries, may be more expensive for women.
- Beauty Objects: Even whilst the elements and quality are equal, ladies’ splendour products, including makeup and skincare, are often priced more than guys’ merchandise.
Impact of Pink Tax
Women make less money than males, yet they pay more for goods and services. As a result, the pink tax in India enhances salary equality regardless of gender while giving women less expenditure power.
Additionally, expensive prices have an impact on society’s standards and push women to adhere to a specific standard of beauty. Failure to meet those standards can lead to emotions of isolation, stress, and unhappiness.
Additionally, the division is made wider by the identification of colours with genders. The idea that blue is associated with boys and pink with girls restricts the options available to each of the genders. It forces individuals to adhere to social conventions while also marginalizing other genders.
Another strategy to avoid paying the pink tax is to choose generic goods rather than those packaged in dazzling pink tones. The biggest companies must develop activities to raise awareness regarding ways that are draining our finances while many people are still unaware that the pink tax exists.
Conclusion
There are several actions being carried out to lower the pink tax. The United Nations has taken initiatives all over the globe to take measures to remove the pink tax to make sure that ladies participate fully and fairly in society and the financial system. In 2022, while we strive to create a society without discrimination against men, ladies, or other genders, rules like the Pink Tax and the Tampon Tax contribute to its gender bias.