Are menstrual pads a luxury item?

KATHMANDU: AUGUST 12 – A writ petition has been filed in the Supreme Court to remove sanitary pads, which are essential for women during menstruation, from the scope of ‘luxury goods. At the same time, this issue has not only come up for discussion once again.

There is 54.39 per cent of the total population of women in Nepal. Various studies have shown that a woman menstruates for an average of 36 years during her lifetime. Pad is the most essential item in the menstrual cycle of all these women. The Government of Nepal has been levying value-added tax (VAT) on the rate of use of ‘sanitary pads’ in ‘luxury items’. The government has been imposing a 13 per cent value-added tax and customs duty on sanitary pads. Even though there was a debate on this issue, it was slowing down. But now this debate has taken legal form.

The policy confusion about what kind of thing is a ‘luxury item’ can be seen at the government level. In the general sense, a ‘luxury item’ is an expensive item that people use for fun and enjoyment, except for the essentials.

Spokesperson of the Ministry of Finance Mahesh Acharya says that the tax is levied on the basis of what is considered as a luxury item. But he said there was no specific list of luxury items. However, sanitary pads, which are essential for women’s health, are also taxed as a luxury item. There is a rule that customs duty has to be paid on the import of raw materials and machines while producing ‘sanitary pads’ in the country.

On average, 10 types of raw materials are imported to Nepal to produce sanitary pads. Of that, 5 per cent of customs duty is levied on each raw material. At the same time, producers have been paying 13 per cent tax after import. Such a ‘pad’ reaches the end consumer with the added price of 5 per cent of the raw material added to the 13 per cent paid by the manufacturer. The government’s economic act sets out what basic health facilities are, which is tax-free. Sanitary pads are not included under that. Therefore, it has been mentioned in the writ petition that sanitary pads should be kept in basic health facilities.

Finance Ministry spokesman Mahesh Acharya said, “If there is a manufacturing industry in Nepal, it seems that goods that are used for luxury are taxed a little more.” This is the theoretical reason. As mentioned in the Finance Act, if the government collects more taxes, it is considered as a luxury item. Therefore, if the Ministry of Finance is also opposed to filing a writ petition in the Supreme Court, we should send a definite answer. ‘