Woman challenges heavy sales tax on sanitary napkins in SHC

The Sindh High Court on Friday issued notices to the attorney general of Pakistan and revenue authorities on a petition seeking exemption from sales tax on sanitary pads and declaring that sanitary napkins be included in essential items.

Petitioner Alisha Shabbir submitted that almost 40 percent of the retail price of a sanitary napkin in Pakistan comes from government taxes and duties on raw materials, instead of the actual cost of production.

She said the heavy tax burden makes sanitary napkins unaffordable for millions of women and girls despite their being a basic hygiene necessity. The petitioner submitted that sanitary napkins are necessities and women and girls need menstrual products to be able to manage their periods safely, hygienically and with dignity. She further said that menstrual products are often not considered basic necessities and thus are not subject to a reduced tax or exemption.

The petitioner’s counsel Farhatullah Yaseen submitted that the sanitary napkin must be classified as essential items, just like other basic necessity of life and accordingly included in the sixth schedule of the sales tax Act 1990 to exempt them from sales tax (with input adjustment).

He said the government should make this exemption meaningful and the raw materials of sanitary napkins should be placed under eight schedule reduced tax with input adjustment so that benefit actually reaches consumers.

The counsel further submitted that the impugned classification and taxation of sanitary napkins as non-essential items are subjecting them to a higher rate of sales tax, which also constitutes an egregious violation of the fundamental rights guaranteed under Article 9 and 14 of the Constitution.

The court was requested to direct the government to classify the sanitary napkin as essential items just like other basic necessity of the life and exempt it from sales tax. An SHC division bench comprising Justice Adnan Iqbal Chaudhry and Justice Mohammad Jaffer Raza issued notices to the federal government, FBR and attorney general of Pakistan and called their comments.