Are Tampons Taxed as a Luxury Item?

It might come as a surprise to many, but tampons—and other feminine hygiene products—have historically been taxed as “luxury items” in numerous countries. Despite being essential for many women during their menstrual cycles, these products are subject to sales taxes similar to non-essential goods like jewelry or electronics. But why are such essential items treated this way, and how have governments responded to the growing outcry? Let's take a deep dive into this issue that touches the lives of millions of people worldwide and explore why these taxes exist, where they still apply, and how countries are responding to demands for change.

Understanding the "Tampon Tax"

First things first: What exactly is the tampon tax? This term refers to the fact that tampons, pads, and similar menstrual products are often categorized as non-essential or luxury items for tax purposes. Many governments apply a sales tax or value-added tax (VAT) on these products, leading to higher prices for consumers. The term “luxury” is misleading—there’s nothing luxurious about menstruating. Instead, this label is a relic from tax systems that historically didn’t recognize menstrual products as necessities.

In many countries, basic necessities such as food and medicine are often exempt from sales taxes or subject to lower tax rates. Menstrual products, however, have traditionally not been considered in the same category. This leaves many people questioning the fairness of such a system, especially when menstrual products are a biological necessity for a large portion of the population.

Where the Tax Still Exists

Despite a growing awareness of the issue and movements to remove the tampon tax, many places around the world still tax menstrual products. As of 2023, countries including the United States, Australia (until 2019), and several European nations have taxed tampons at varying rates.

For example, in the U.S., the sales tax on menstrual products varies by state, with only a handful having exempted these items entirely. In other states, tampons and pads are still taxed at rates ranging from 4% to 10%. Countries like Germany once had a 19% VAT on tampons—until 2020 when it was reduced to 7% after years of advocacy.

Why Were Tampons Taxed in the First Place?

The roots of the tampon tax can be traced back to old, outdated tax systems that classified items into categories of necessity versus luxury. While food, medicine, and other essentials were exempted from tax in many jurisdictions, menstrual products didn’t make the cut. This oversight likely stemmed from the stigma around menstruation and a general lack of understanding about the necessity of these products. Historically, lawmakers—predominantly male—may not have fully appreciated the essential nature of tampons and pads.

The Global Fight for Change

The movement to eliminate the tampon tax has gained traction in recent years, thanks in part to increased awareness and advocacy by women’s rights groups, politicians, and the general public. This growing awareness has led to significant changes in some parts of the world:

1. Scotland became the first country in the world to make all period products free of charge in 2020.
2. Canada eliminated the tampon tax in 2015, a landmark decision that set a precedent for other nations.
3. India removed the goods and services tax (GST) on menstrual products in 2018 after intense public backlash.
4. Kenya was a pioneer in this movement, eliminating its tax on menstrual products as early as 2004, showing that change has been possible for quite some time.

Despite these victories, the tampon tax still exists in many parts of the world. Proponents of eliminating the tax argue that it disproportionately affects women, particularly those in lower-income groups, and contributes to “period poverty” — the inability to afford necessary sanitary products.

The Economic Impact of the Tampon Tax

Let’s talk numbers. How much money does the tampon tax actually generate for governments? In many countries, the revenue from taxing menstrual products is relatively small compared to other taxable goods. For example, it’s estimated that the state of California lost about $20 million in tax revenue per year after eliminating the tampon tax. But when you consider the number of women affected by these taxes and the relatively low cost of menstrual products compared to other taxed goods, the revenue gain for governments seems minor, while the financial burden on individuals can be significant.

Breakdown of Tampon Tax Revenue in Selected Countries

While these figures may seem substantial, they represent a fraction of overall government revenues. Critics argue that the societal cost—particularly in terms of gender inequality—far outweighs the financial benefits of maintaining the tax.

Period Poverty: A Serious Issue

One of the most pressing concerns related to the tampon tax is how it contributes to period poverty. Many women and girls, particularly in low-income households, struggle to afford basic menstrual products. This lack of access can lead to absenteeism from school or work, health risks from using improvised materials, and overall negative impacts on quality of life.

A study conducted by Plan International in the UK found that one in ten girls had been unable to afford menstrual products at some point, while one in seven had borrowed products from friends due to cost issues. The problem is even more severe in developing nations, where period poverty can limit access to education and employment opportunities.

Arguments for and Against the Tampon Tax

As with any tax policy, there are arguments on both sides of the tampon tax debate. Those who favor eliminating the tax argue that menstrual products are a basic human need and should be treated as such. They also point out that exempting menstrual products from tax is a simple way to reduce gender inequality in tax systems.

On the other hand, some argue that eliminating the tampon tax could create a slippery slope where other products, such as shaving cream or diapers, are also considered for tax exemption. There is also the argument that eliminating this tax would reduce government revenue, though as we’ve seen, the revenue from menstrual products is often relatively minor.

The Future of the Tampon Tax

The future looks promising for those advocating against the tampon tax. More and more countries are moving toward either reducing or eliminating taxes on menstrual products entirely. Advocacy campaigns have raised awareness and applied pressure on governments to act, and many are listening.

The broader trend of gender-sensitive tax policies is likely to continue as the world becomes more conscious of gender equity and fairness in taxation. We may soon reach a point where the tampon tax is a relic of the past in most parts of the world, and menstrual products are rightly recognized as essential items, not luxuries.

Conclusion: An Outdated Practice in a Changing World

The tampon tax is one of the many ways tax systems have failed to keep pace with modern realities. Classifying menstrual products as luxury items ignores the fundamental role they play in millions of women’s lives. However, the tide is turning. With continued advocacy, more governments are recognizing the importance of affordable access to menstrual products, and the tampon tax may soon be relegated to history.

Tampons are not a luxury—they are a necessity.