Pink Tax

Pink Tax Latest News

While there are no specific laws in India to address the issue of Pink Tax, the National Consumer Disputes Redressal Commission ruled that companies must follow fair pricing policies and avoid gender-based price discrimination.

About Pink Tax

• The Pink tax is neither a real tax nor is it a government-imposed fee.
• It is a term used to describe the extra cost that some companies charge for products marketed to women compared to similar products marketed to men.
• This means women might end up spending more money for the same product that men get for less.
• When companies charge more for pink (female) products compared to blue (male) versions, the extra revenue does not go to the government but benefits the companies themselves.
• Pink toys, haircuts, dry cleaning, razors, shampoos, body lotions, deodorants, facial care, skincare items, beauty care, clothing, T-shirts, jeans, salon services ,etc. suffer the tax.
• The term “Pink Tax” is believed to have originated in the U.S. in California in 1994. 
  • It emerged following the realisation that brands in various cities consistently charged women higher prices for goods and services than men. 
  • As per a study done in the U.S., personal care products targeting women were 13% costlier than men’s. Further, women’s accessories and adult clothing were 7% and 8% more expensive.

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Pink Tax in India

• The “pink tax” is not prohibited by law in India, and there are no set government regulations on this pricing practice. 
• Female-targeted goods and services prices are determined based on market dynamics and demand. 
• While there is limited research on the pink tax in India, surveys indicate price variations between products for women and men.
• While there are no specific laws in India to address the issue of Pink Tax, the National Consumer Disputes Redressal Commission ruled that companies must follow fair pricing policies and avoid gender-based price discrimination.

Source: TH