Experts welcome tax relief for sanitary pads and contraceptives, but urge caution


The federal government has proposed to abolish tax on sanitary pads, women’s health-related products and contraceptives in the budget for fiscal year 2026-27.

Finance Minister Muhammad Aurangzeb made the announcement while presenting the federal budget, saying that essentials for women’s health were daily needs linked to dignity and social participation.

“Essential items for women’s health, such as sanitary pads and related products, are daily necessities indispensable for women’s health, dignity and full participation in social activities,” the Finance Minister said in his budget speech.

“Therefore, it is proposed to abolish the tax on sanitary pads and related items,” he added.

Aurangzeb also announced the abolition of the tax on contraceptives, linking the move to Pakistan’s demographic challenge and the government’s family planning priorities.

“The second measure in this sense refers to the abolition of the tax on contraceptives,” he said.

“Pakistan is the fifth largest country in the world in terms of population. The population growth rate is alarming and family planning is one of the government’s top priorities. Therefore, we will completely abolish the tax on contraceptives.”

The proposal was welcomed by human rights advocates and economic analysts, although they warned that the announcement should result in real price relief for consumers.

‘Overlooked for too long’

Mahnoor Omar, lawyer and human rights activist, said geo.tv That the government removing the pink tax and also the contraceptive tax is a step in the right direction to finally show that they are willing to take women’s health, and specifically sexual and reproductive health, seriously.

“This is not only an area where there are many taboos and stigmas, but it is also an area that has been overlooked for too long. Many other countries in the region have already abolished it, so I personally welcome this move and hope that it is just the first step in the right direction, where we begin to take women’s health and well-being more seriously,” she said.

Not only is this an area where many taboos and stigmas exist, but it has also been overlooked for far too long.
— Lawyer and human rights activist Mahnoor Omar

She noted that any perceived financial or economic shortfall caused by the removal of this tax will actually be offset, as more girls will now be able to attend school and more women will be able to take care of themselves without having to choose between purchasing sanitary pads and prioritizing other essential items.

“More girls will also be able to play sports comfortably. This affordability will lead to greater accessibility; while earlier sanitary pads were not available in general stores in remote areas of Pakistan, this move can ensure that they are accessible across the country,” he said.

This is a very welcome step, Omar said, and he hopes it will lead us to review other Pakistani laws so that we can improve and ensure inclusion across all classes, socio-economic backgrounds and genders.

“It’s time for us to be very, very vigilant”

Bushra Mahnoor, founder of Mahwari Justice, a student-led organization whose name translates as “menstrual justice,” appreciated the government’s proposal but said geo.tv It was too early to celebrate.

“I really appreciate this decision by the government to propose a reduction in the tax, but I think it is also a very critical moment for us and we should not be blinded by the optics of it,” he said.

Mahnoor said the measure had only been proposed at this stage and warned that “bureaucratic red tape” could still affect the actual removal of the tax.

Budget: Experts welcome tax relief on sanitary pads and contraceptives, but urge caution

“But even when we remove the tax, there are many things we need to be aware of,” he said, citing the example of the United Kingdom, where he said manufacturers raised prices subtly after the removal of the tax on vintage goods.

“So I think this is the time for us to be very, very vigilant and increase our advocacy efforts and not celebrate yet because there is so much more to do,” he said.

Mahnoor said the proposal remained an “amazing measure” and reflected years of advocacy by activists who had worked both on the ground and online to foster conversations about menstruation.

However, she highlighted that menstrual injustice in Pakistan is not limited to access to menstrual products.

“Access to period products is only part of that huge problem that we are trying to solve because there are only a very small number of people who can use these period products to begin with,” she said.

He said many people didn’t use those products or didn’t want to use them, meaning the proposed tax cut wouldn’t reach as many people as advocates would want.

This is a step forward, but I would say it is very symbolic.
— Bushra Mahnoor, founder of Mahwari Justice

Mahnoor added that even when safe menstrual products were available, many women still lacked basic facilities such as toilets, clean running water and proper sanitation.

“There are no toilets, there is no clean running water, women still have to walk miles and miles to access water just to clean themselves,” she said.

She also linked the issue to climate change and water scarcity, saying disaster situations and worsening access to water made safe menstruation difficult.

“So yes, this is a step forward, but I would say it is very symbolic,” he said. “This is definitely not the end goal. This is the beginning of our fight because there is much more to do.”

Mahnoor said she would “really celebrate” when menstrual education was included in Pakistan’s curriculum and when no one had to hide their periods due to stigma.

[This] It is a step in the right direction to focus on benefiting half of the population’s basic hygiene needs.
— AAH Soomro, economic analyst

AAH Soomro, an economic analyst, also welcomed the proposal, calling it “a step in the right direction.”

“That is a step in the right direction to focus on benefiting half of the population’s basic hygiene needs,” he said. geo.tv.

Soomro added that Pakistan also needed to do more to control population growth.

‘Menstrual health is not a taxable privilege’

Tax law expert Dr Ikram ul Haq said geo.tv that the proposal to exempt sanitary pads and contraceptives from tax is a welcome and overdue recognition that these are not luxury items but essential products for health and hygiene.

“From both a tax policy and human rights perspective, taxing these items places a disproportionate burden on women and low-income households, creating barriers to menstrual health, reproductive health and family planning,” she noted.

The tax expert said that access to these products is closely linked to the rights to health, dignity, equality and bodily autonomy.

The income forgone is likely to pale in comparison to the social benefits of improved public health and reduced gender inequality.
— Dr. Ikram ul Haq, Tax Law Expert

“The revenue forgone is likely to be insignificant compared to the social benefits of improved public health and reduced gender inequality. However, the real challenge is ensuring that the tax relief is actually passed on to consumers through lower retail prices, rather than being absorbed by middlemen in the supply chain.”

He added that if governments can give billions in tax concessions to powerful sectors, eliminating taxes on sanitary pads and contraceptives is the least a welfare-oriented state should do.

“Menstruation and reproductive health are biological realities, not taxable privileges.”

Haq added that the measure aligns taxes with constitutional guarantees of dignity and the State’s obligation to promote public health. “It should not be seen as a tax concession but rather the removal of an unfair burden on essential health products.”

“The value chain must be studied pragmatically”

Dr Razia Safdar, senior policy advisor at the Center for Health Policy and Innovation, said geo.tv that the abolition of the 18% menstrual tax is a very positive step to improve menstrual health, especially for adolescent girls. Pakistan is now among the 17 countries with 0% period tax, he noted.

“It will increase affordability, access and utilization of the products. Currently, 16% of women use commercially available sanitary pads, 66% rely on fabrics and 50% use recycled fabrics. Therefore, the impact on menstrual health will not be immediate, but it will be facilitated.”

“Secondly, how the price is set after the budget, and there is a need to increase local production of these products – the entire value chain needs to be studied pragmatically. I hope that end users will benefit from these initiatives, especially in the low-income segments.”

We need to take a deeper look at imported products, how the market is addressing the flow and how customs duties will be addressed.
— Dr. Razia Safdar, Senior Policy Advisor, Center for Health Policy and Innovation

“Some startups are doing it to attract investments and seed capital. But someone needs to study large-scale, commercially viable, low-cost business models in the Pakistani market, because different types of business models can be simulated under different assumptions.”

Dr Safdar added: “We need to take a deeper look at imported products, how the market addresses the flow and how customs duties will be addressed.”

“There is a need to facilitate local production of products and for startups to do so to attract investments and seed capital. But someone needs to study large-scale, commercially viable and low-cost business models in the Pakistani market.”

“I hope you can tolerate the traditional post-Budget price hike,” he added.



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