Experts welcome tax breaks on sanitary napkins, contraceptives, but urge caution

The federal government has proposed to abolish taxes on sanitary napkins, related women’s health products and contraceptives in the 2026-27 budget.

Making the announcement while presenting the federal budget, Finance Minister Muhammad Aurangzeb said essential elements for women’s health were daily necessities associated with dignity and social participation.

“Essentials for women’s health, such as sanitary napkins 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.

“It is therefore proposed to abolish the tax on sanitary napkins and related items,” he added.

Aurangzeb also announced the abolition of taxes on contraceptives, linking the measure to Pakistan’s population challenge and the government’s family planning priorities.

“The second measure in this regard concerns the abolition of taxes on contraceptives,” he said.

“Pakistan is the fifth largest country in the world in terms of population. The population growth is alarming and family planning is a top priority for the government. That is why we are completely abolishing the tax on contraceptives.”

The proposal was welcomed by rights campaigners and economic analysts, although they warned that the announcement should translate into actual price cuts for consumers.

‘Overlooked for far too long’

This was told by lawyer and human rights activist Mahnoor Omar Pakinomist.tv that the government’s removal of 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 a lot of taboo and stigma exists, but it is an area that has been overlooked for far too long. Many other countries in the region have already abolished it, so I personally welcome this step and I hope that this is just the first step in the right direction where we start to take women’s health and well-being more seriously,” she noted.

Not only is this an area where a lot of taboo and stigma exists, but it is an area that has been overlooked for far too long.
— Lawyer and human rights activist Mahnoor Omar

She noted that any perceived financial or economic deficit caused by removing this tax will actually be offset as more girls will now be able to go to school and more women will be able to take care of themselves without having to choose between buying sanitary napkins and prioritizing other essentials.

“More girls can also play sports comfortably. This affordability will lead to greater availability; while pads were previously unavailable in mainstream stores across remote areas of Pakistan, this move can ensure they are available across the country,” she said.

This is a most welcome step, Omar said, and hoped it would lead us to review other Pakistani laws so that we can do better to ensure inclusivity across all classes, socio-economic backgrounds and genders.

‘Time for us to be very, very vigilant’

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

“I really appreciate the government’s move to propose a reduction in tax, but I think this is also a very critical time for us and we shouldn’t be blinded by the optics of it,” she 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 breaks on sanitary napkins, contraceptives, but urge caution

“But even when we get the tax removed, there are so many things we have to be aware of,” she said, citing the example of the United Kingdom, where she said manufacturers raised prices in subtle ways after the removal of the tax on period products.

“So I think it’s time for us to be very, very vigilant and step up our advocacy and not celebrate yet because there’s a lot more that needs to be done,” she said.

Mahnoor said the proposal was still a “fantastic move” and reflected years of advocacy by campaigners who had worked both on the ground and online to encourage conversations around menstruation.

However, she emphasized that menstrual injustice in Pakistan was not limited to access to period products.

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

She said many people didn’t use such products or didn’t want to use them, meaning the proposed tax break won’t reach as many people as advocates want.

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

Mahnoor added that even where safe period 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 problem to climate change and water scarcity, saying disaster situations and worsening access to water made safe menstruation more difficult.

“So yes, this is a step forward, but I would say it’s very symbolic,” she said. “This is definitely not the end goal. This is the start of our fight because there is so much more to be done.”

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

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

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

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

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

‘Menstrual health not a taxable privilege’

Tax law expert Dr. Ikram ul Haq Pakinomist.tv that the proposal to exempt sanitary napkins and contraceptives from taxation is a welcome and belated recognition that these are not luxury goods, but essential health and hygiene products.

“From both a fiscal policy and human rights perspective, taxing such things disproportionately burdens women and low-income households, creating barriers to menstrual health, reproductive health and family planning,” he noted.

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

The revenue sacrificed is likely to be insignificant compared to the social benefits of improved public health and reduced gender inequality.
— Tax law expert Dr. Ikram ul Haq

“The revenue sacrificed is likely to be negligible compared to the social benefits of improved public health and reduced gender inequality. However, the real challenge is to ensure 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 breaks to powerful sectors, removing taxes on sanitary napkins and contraceptives is the minimum a welfare state should do.

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

Haq added that the measure brings taxation into line with constitutional guarantees of dignity and the state’s obligation to promote public health. “It should not be seen as a tax benefit, but as 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 Pakinomist.tv that the abolition of the 18% period tax is a very positive step to improve menstrual health, especially for young girls. Pakistan is now among 17 countries with 0% periodic tax, she noted.

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

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

We need to look more deeply at imported products, how the market handles the flow and how customs will be handled.
— Dr. Razia Safdar, senior policy advisor at the Center for Health Policy and Innovation

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

Dr Safdar added: “We need to look more deeply at imported products, how the market addresses the flow and how customs duties will be dealt with.”

“There is a need to facilitate local production of products and start-ups doing so to attract investment and seed money. But someone needs to study large-scale, commercially viable, low-cost business models in the Pakistani market.”

“I hope it can tolerate the traditional price hike after the budget,” she added.

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