Women’s Day? Let’s talk about the unseen cost of being a woman: ‘Pink Tax’— What is it and how can you avoid it?

Women’s Day 2025: International Women’s Day is here again on March 8! On this occasion, while we celebrate women around the globe, the systemic cycles in every economy have certain hidden pressures that need to come to the fore. Ever wondered why you might be paying more tax compared to men just because of your gender? That’s called ‘Pink Tax’, ladies —the unseen cost of being a woman! Women may have to pay more for identical items than men, who purchase them for less. Let’s understand what is pink tax.

The pink tax refers to the tendency for products marketed specifically toward women to be more expensive than those marketed toward men. According to studies, the pink tax is also one reason why women have comparatively less purchasing power than men. This phenomenon is attributed to gender-based price discrimination. The pink tax, in reality, is not a governmental tax.

Also Read: Are you paying more just because you’re a woman? Unveiling the pink tax

What is Pink Tax?

In simple words, the “Pink Tax” refers to charging women more than men for similar products or services. The pink tax is a common phenomenon in India, with women being charged more for products explicitly marketed to them. According to tax experts, the pink tax is more than just a pricing variation. It reflects deep-seated gender inequality that has economic implications.

The pink tax is not an actual tax levied by the government. However, it has seeped into women’s products and increased the retail price. According to the World Economic Forum (WEF), products such as clothing, shoes, and cosmetics marketed and created only for women frequently have higher prices.

Also Read: Stocks, MFs, Gold to PPF: 8 top investment options for women on International Women’s Day 2025

Examples of Pink Tax

For example, those marketed towards women and packaged in pink could cost more than those with a neutral colour scheme. Perfumes and razors used by women cost more than men’s. The imbalance is not limited to a pink tax on goods; it can also apply to services. For example, a woman’s haircut is typically 60 per cent more expensive than a man’s.

According to domestic brokerage Mirae Asset, which acquired Sharekhan, there are occasional justifications for the pricing discrepancy. Consider haircuts as an example. The conventional reasoning for the price difference is that since women’s hair is usually longer, there is more hair to trim and style. In addition, more attention to sanitation is required, and women’s hair may require different training for the end result of styling.

Last year, the government completely exempted sanitary pads from the goods and services tax (GST), charging a zero per cent tax rate on the final sale of sanitary pads in India. However, the raw materials used in the production of sanitary napkins still attract a GST ranging from 12 to 18 per cent, which ultimately increases the cost of the final product.

New York State Department of Consumer Affairs found in a study that items marketed towards women were priced seven per cent higher than those for men or gender-neutral items, with personal care products for women showing a 13 per cent price disparity. Similarly, investigations in the UK revealed price differences, such as women’s deodorant being 8.9 per cent pricier than men’s and women’s facial moisturizer costing 34.28 per cent more.

Also Read: International women’s day: Four financial tips every woman should know for smart fund allocation

Impact of Pink Tax

Pink taxes decrease women’s purchasing power, and the ultimate economic burden maximises existing gender inequalities, limiting women’s economic empowerment. The pink tax also reinforces harmful stereotypes, suggesting that products for women are more luxurious, justifying the higher price.

This perpetuates the notion that women’s needs are less important. The Global Gender Gap Report 2022 revealed a 19 per cent pay disparity between men and women in India. This wage gap persists across various industries, from agriculture to IT, driven by multiple socio-economic factors. Simply put, a few extra rupees per product equals thousands lost over a lifetime.

Women already earn less due to the wage gap, and the pink tax makes it worse. The luxury tax on menstrual hygiene products increases this burden. A United Nations report highlighted that globally, women earn 77 cents for every dollar men earn. The World Economic Forum’s Global Gender Gap Report 2022 reveals that only five out of 146 countries analysed have achieved scores higher than 0.80 in wage equality, with 129 countries reporting a decline in women’s labour force participation compared to men’s.

Also Read: Women’s Day 2025: ‘She Directs Ads’ collective launched to amplify voices of Indian female ad directors

India Inc leaders on Pink Tax

Kiran Mazumdar-Shaw, the executive chairperson and founder of Biocon, India’s first biopharmaceutical company, highlighted the phenomenon of pink tax and gendered pricing disparity last year. The billionaire entrepreneur took to the microblogging platform ‘X’ and said, “Pink Tax! A shameful gender bias that women must respond to by shunning such products!”

Devina Mehra, chairperson, managing director and founder of leading investment management firm First Global, responded to Shaw’s retweet and said, “Not only that – the quality of products for women (think shirts) is often lower than that for men. Plus, there are ‘savings’ for manufacturers as many standard women’s clothes don’t have pockets, whereas men’s clothes always do – yes, even when the ‘man’ is a 10-month baby.”

How to avoid Pink Tax?

1.Compare prices and call out unfair pricing. If you believe a less expensive blue version of the same product can accomplish the same task, then buy that over your regular pink counterparts.

2.Support the brand with gender-neutral pricing. Several brands and services offer products at the same prices for all genders. Be a wise customer for your shopping expenses.

3.Women’s specific products, such as shampoos, conditioners, and creams, are more expensive due to flashy packaging and heavy scents. Consider whether you truly need those products and whether a less expensive one will suffice.

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