Pink Tax: The Hidden Cost of Gender Bias

A renewed debate over the rationale behind the 'Pink Tax' has sparked following entrepreneur Kiran Mazumdar Shaw's recent comments, where she described it as a “shameful gender bias” that women must challenge by avoiding such products.

Shaw shared her views on the Pink Tax through a video posted on X by branding expert Dr Sanjay Arora. In the video, Dr Arora explains the implications of the Pink Tax and how it negatively impacts the purchasing power of women.

The term "Pink Tax" refers to the phenomenon where products marketed specifically to women are priced higher than similar products marketed to men. It is not a tax imposed by the government, but rather a pricing disparity in the market.

In the video, Dr. Arora highlights that products like women’s razors, skincare items with nearly identical ingredients, and even haircuts can cost 10% to 100% more than their male counterparts. This issue is not confined to India; Dr. Arora also points out the price difference in basic white t-shirts sold by Swedish fashion brand H&M. Additionally, he highlights that women pay more for goods and services even though they earn 14.8% less than men for performing the same work.

Reports indicate that women spend, on average, Rs 1 lakh more than men on products marketed specifically for women.

Experts have raised concerns that the Pink Tax exacerbates gender inequalities, limits women’s economic empowerment, and perpetuates harmful stereotypes.

While the Central government has exempted sanitary pads from GST, raw materials for these products are still subject to a GST of 12-18%, further driving up the final cost.

In response to Shaw’s post on X, Devina Mehra, Founder and CMD of First Global, pointed out that the quality of women’s products, such as shirts, is often inferior to those made for men. She also noted that manufacturers save costs by not including pockets in many women’s clothes, unlike their male counterparts—this, she quipped, applies even to baby clothes.