By Pujanee Galappaththi and Dinithi Gunasekera
Following the 2021 Budget presentation last month, which sparked heated debate among members of the Opposition on the taxation of sanitary products, the issue of period poverty and the discussion on access to sanitary products; safe, hygienic spaces in which to use them; and the right to manage menstruation without shame became a topic of discussion within the general public.
According to the Advocata Institute, Sri Lanka has approximately 4.2 million menstruating women, thus a 15% tax imposed would have a serious impact on the women. The Sunday Morning spoke to Samagi Jana Balawegaya (SJB) National List MP Diana Gamage and SJB MP Rohini Wijeratne Kavirathne of the Opposition who were predominantly vocal in this regard.
In Gamage’s speech in Parliament, she noted concerns on how the proposed tax will affect 52% of Sri Lanka’s population and appealed to make sanitary napkins essential goods.
According to the Advocata Policy Brief (May 2020), sanitary napkins and tampons are taxed under the HS code HS 96190010. The import tariff levied on these products is 52%, and until September 2018, the tax on sanitary napkins was 101.2%. The components of this structure were General Duty (30%) + VAT (15%) + PAL (Port and Airport Development Levy) (7.5%) + NBT (Nation Building Tax) (2%) + CESS (30% or Rs. 300/kg).
To put these values into perspective, we asked Gamage if the tax amendment is a point of concern, following Trade Minister Dr. Bandula Gunawardana’s comments on how the tax reforms result in a “zero” effect.
“I inquired about it and there is no more such a thing as an extra 15% tax being imposed. There was a 30% CESS on it either way. They have simply dissected it and derived 15% as CESS and 15% tax,” explained Gamage.
“My current interest lies in bringing sanitary products under the label of essential goods and attempting to get rid of all remaining taxes,” Gamage further noted.
Kavirathna added: “Furthermore, most people forget that the term sanitary products encapsulate diapers needed for babies, the elderly, and people with disabilities as well.”
“I believe that these products should be essential goods because it’s an ongoing phenomenon which has always existed and will persist. As long as humankind remains on Earth, this biological process would exist,” said Gamage.
“We’re looking at a span of 40-50 years of a woman’s life. There is even a small percentage of women who menstruate at the age of 60-65.”
Current sanitary napkin tax in perspective
The tariff rates on sanitary napkins were at 102%, starting out. After certain reforms, the Export Development Board (EDB) CESS component had been removed following a Value-Added Tax (VAT) reduction of 62% to 52% in 2019.
Strengthening local market penetration
Speaking to Gamage on the rationale behind these reforms, even with a seemingly “zero effect”, she explained how it’s an attempt to encourage and give priority to the local production of sanitary products. According to her, about six local companies produce these products and there are many interested in starting up.Essential, not luxury
“If you estimate the minimum days per monthly menstruation per woman, two small packets of sanitary napkins are the estimated number used. In this case, a minimum of Rs. 350 is spent. In a case of three female family members per family unit, the cost they have to pay for menstruation is over Rs. 1,000 monthly,” Kavirathna explained.