WOULD YOU BELIEVE ME, IF I SAY THAT WOMEN ARE PAYING TAX JUST FOR BEING A WOMEN?

The answer is YES, THIS is happening for years and we are still not aware of it.

YES! we are paying tax for being women and this is called 'PINK TAX'.

A very unfamiliar sounding text right? so was the case with me

So that is what I thought to read and write a blog about it.

So let us begin with what pink tax actually is and where did it originate from

PINK TAX: The pink tax is a phenomenon often attributed as a form of gender-based price discrimination.

THIS IS AN INVISIBLE COST THAT WOMEN  PAY FOR  THE PRODUCTS DESIGNED AND MARKETED ESPECIALLY FOR WOMEN

It got its name from the observation that products used by women are usually pink.

Pink tax can be easily seen in personal care & beauty products, the cloth & retail industry, menstrual hygiene products, etc.

All though some underdeveloped countries like Alaska, Delaware, New Hampshire, Montana, and Oregon don't have a pink tax system, A considerable fact is a most of the developed and developing countries including India have been following it.

A study conducted by NEW YORK CITY of CONSUMER AFFAIRS concluded that women's products costs on an average 7% more than men's products that too without a reasonable cost and factor.

If we try to compare the void in prices in the different industries this gap becomes more apparent the more we dig in. For example

IN PERSONAL CARE

GILLETE:

is the manufacture of both Gillette shaving razors for men and venus women razors. However, the women's razor costs more than men's. Despite being manufactured by the same company

Gillete razor costs RS.63/-

the venus razor costs RS.224/-(refer to picture I)

There can be two reasons for it

Let’s look at it in detail.

The MRP of any product has 3 basic components. The Production cost, Manufacturer’s margin, and the taxes. Let say the production cost of Gillette razor for both the gender is rupees 10. Now if the company takes a profit of say 5 rupees and the government takes rupees then the price will shore to rupees 20. In case there is tax discrimination by the government i.e., 5 rupees on men’s razor and 7 rupees for women’s razor, then the women’s razor will be costlier by 2 rupees because of the taxes. And in case the company takes a margin of 7 rupees on women and 5 rupees on men, then the women’s razor will be costlier by 2 rupees because of the Company. Now it for us to find the exact reason.

Even a survey conducted on the cost of living in regions of GHMC salons concluded that

The haircut for women costs almost 70% more than the men's haircut even though it many a normal trim.

IN MENSTRUAL CARE PRODUCTS:

There is a lot to say about menstrual hygiene products Another blog on menstrual hygiene products can be easily published.

In, India menstrual hygiene is still a choice, not a necessity

According to a survey conducted by NDTV in 2018 called SwacchIndia

the only 36% of women can afford pads and use it

The menstrual hygiene industry in India itself is worth turnover RS.25.02 billion initially with a whopping GST of 12% on pads.

It is miserable to see where other countries like Scotland have made menstrual hygiene a necessity, not a choice by giving free pads for the women in the country. It is sad to see us still struck at the pink tax. Some countries are even contemplating having mandatory period leaves

IN TOY RANGE

Even in kid's toys, you can easily see a distinguishable 4% difference in the prices of girl's and boy's toy range (refer to picture III).

REASONS FOR THE EXISTANCE OF PINK TAX

1.TARIFFS:

A tariff is a tax imposed by the government to make imports less desirable

The fact to notice here is that 40% of Women's beauty care products in India are imported, which means a higher cost for the women.

2.PRODUCT DIFFERENTIATION:

It's just a marketing strategy trying to gain customers by distinguishing between the products just to make them look attractive.

The perfect example is the blue & pink razor

In marketing, it is believed that women are more price elastic than men

They care less about the product or service they pay

Indirectly they are whopping billions just by creating a gap.

VOICE AGAINST PINK TAX IN PARLIAMENT

On July 8, 2016, the pink Tax repeal bill was introduced by Representative Jackie Speier a member of the California State Senate.

The aim was to end-gender based price discrimination.

Long story short, the bill leads to a 10% gain in seats and that leads to an approximately 0.44% decrease in pink tax.

Opposition to the Pink Tax Repeal Act came from retailers and manufacturers of women's products and clothing. The main argument is that the Pink Tax Repeal Act would be difficult to enforce and lawsuits would follow. The difference between men's and women's products is not always easy to see, they argue, so removing the pink tax would be subjective. They also alleged that the bill was unfriendly to domestic manufacturing jobs and that lowering the prices for women's products could lead to employee layoffs.

CONCLUSION

It's on our part to be an aware consumer and create consumer awareness against many such marketing gimmicks. The retailers are continuing to do so because we continue to buy it. Of course, we can't stop this in one go.

One of the reasons for the arousal of pink tax is marketing and

not falling for the marketing gimmick of the retailers will remove this gender-based price discrimination from the root cause.