INDIA’S INTERNATIONAL MOVEMENT TO UNITE NATIONS

STUDY GUIDE
COMMITTEE: UNITED NATIONS WOMEN
AGENDA: THE QUESTION OF ‘PINK TAX’
 MANDATE
UN Women is an entity dedicated solely to working towards the amelioration of gender
quality and its policies as well as the empowerment of women. It is a global champion for
women and girls upholding their rights and ensuring every single one of them lives up to their
full potential. It was established to accelerate progress in meeting their needs worldwide.
UNW supports its member states to set global standards in the pursuit of achieving gender
equality. It works with a myriad of governments and civil societies to design better laws,
policies, programmes and services needed to ensure that the standards designed are
implemented and truly benefit women and girls worldwide.
It strives to work globally to make the vision of the Sustainable Development Goals a reality
for women and girls and stands behind women’s equal participation in all aspects of life. It
coordinates and promotes the UN system's work in advancing gender equality and in all
deliberations and agreements linked to the 2030 agenda. This entity works to position gender
equality as fundamental to Sustainable Development Goals and a more inclusive world.

INTRODUCTION

Pink Tax
The pink tax is attributed to price-based discrimination with the name stemming from the
prejudice that many of the affected products for women are pink. It refers to an alleged
empirical regularity that consumer products which are explicitly targeted and advertised
towards women despite the products being similar to that of men, are more expensive than
usual thus extorting additional revenue from women which does not go to the government.
This disparity is called the Pink tax. The only beneficiaries of the controversial ‘Pink Tax’ are
the companies that charge women more than men.

1
It is considered to be a blatantly discriminatory revenue-driven tax, affecting women from all
walks of life from cradle to the grave. Starting with girls' toys and up until adulthood,
personal care items and services cost a higher premium. Goods that fit the parameters of the
pink tax all share one commonality: they are being directly branded and targeted to fit the
supposed needs of those identifying with the female gender.

1
https://www.weforum.org/agenda/2022/07/what-is-the-pink-tax-and-how-does-it-hinder-women/
Causes

The reason the pink tax came into effect owes to the uneven tariffs imposed on the products,
product discrimination, product differentiation and price elasticity. The skills and services
demanded, various fabrics, and more precision in designing products catering to the
sensitivity of each woman also amount to the same. If the inputs used in producing the
products for women are costlier then the price of the product will also reflect this difference.
The same applies to services. With respect to clothing, women’s and men’s clothing differ in
production costs due to the distinctness of build, cut and design because women’s clothing
tends to be made with a more expensive blend of fabrics. Since many men’s shirts only have
one fabric, this difference in textiles could be one of the driving factors. Additionally, how an
item is cut – most men tend to have straight-cut clothes unlike women’s fitted clothes- may
result in more fabric waste which would be more costly.

However, the issue of gender inequality resurfaces as the target being women alone raise
many questions regarding the credibility of the policy. The strong belief that women have low
price sensitivity and spend more on improving their appearance owing to the highly
unrealistic and generalised beauty standards set for them making them more self-conscious,
can be deemed to be one of the reasons why this tax is so prominent yet hidden. They are
compelled to pay 13% more than men for personal care items, 7% more for the toys and
accessories marketed towards them and so on. The wide wage gap is indeed disadvantageous
since women are not remunerated enough yet are charged extra merely due to the products
and their packages being pink or purple in colour.

2
Jennifer Weiss Wolfe, Vice President for Brennan School of Justice at NYU School of Law
attributed the existence of the pink tax to the capitalist saying ‘If you can make money off of
it, you should.’ Pricing experts justify that the pink tax on personal care products makes
perfect economic sense. It is just one example of value-based pricing and price discrimination
that are the cornerstones of effective pricing strategy and profit maximisation. Labelling
products for instance – ‘shampoo for men’, and ‘shampoo for women’ divides the market

2
https://www.healthline.com/health/the-real-cost-of-pink-tax
based on gender there itself. The strategic placement of the products by dividing the store into
‘for men’ and ‘for women’ sections contributes to the same.

Economic Impact

The pink tax has posed to be an economic burden on women around the globe for a long
time, especially taking into account the fact that they continue to earn less than men.
The world economic forum's Global Gender Gap Report 2022 clearly states that when wage
equality for similar work is critically pondered and scrutinised only five out of the 146
countries achieved scores higher than 0.80 ( A score of 1.0 is the standard of full wage
parity). The gender pay gap is one of the salient factors playing part in the overall
gender-based inequality. Further, these taxes and the gender pay gap work both independently
as well as in conjunction, rendering women more financially unstable. The Pink tax makes
women victims of increased expenditure whereas the gender pays gap cuts short their
earnings. The two coupled together make women more economically vulnerable by
considerably reducing their purchasing power. For every dollar earned by a man, women earn
only 83 cents which showcase the same.

Social Impact

Even though many outward instances of discrimination are erased, socio-economic disparity
still holds through instances of the pink tax and other taxation directed at women.
Furthermore, the wage gap between men and women is still prevalent, along with
occupational segregation by sex, which also contributes to a difference in earnings. Consumer
price disparity can be further differentiated through the ‘cost of being female’ that derives
from society’s cultural norms. For example, these underlying biases regularly lead to an
undervaluation of female capability that also contributes to circumstances surrounding the
economic disparity experienced by women. Societal norms help the pink tax phenomenon to
continue as they are associated with the overall cost of belonging within the female gender.
Throughout history, women have suffered through deep socio-economic disparity. Within
ancient Egypt, women were able to hold financial rights alongside men, such as owning
property. Over time, women became viewed as the property of men, first by their fathers and
then their husbands, and economic rights and society dissipated within many cultures. The
U.S. did not allow women to open bank accounts without the permission of their husbands
until the 1960s and it was not until 1978 that it became illegal to fire women for being
pregnant. These historic instances of political and economic disparity directed toward women
are now eradicated and ended over time, but, as with any injustice, shadows remain in
society, whispering of the norms that once were. The above-mentioned norms to some extent
are still expected to be tended to by the standards and roles set by society. The reports
presented by the International Labour Organization state that though women work more, they
are paid less. This tax is also known to implicitly give way to racist and misogynistic culture.
As per Data from the Bureau Of Labour Statistics 2020, the gender pay gap has been worse
for women of colour, who earned even less compared to white men. Lesser remuneration
implies lower disposable income at hand affecting their preferences in the consumer market.
And to further exploit them using their willingness to pay more for products they truly need
for products they are manipulated into buying because of the decades of high standard
expectations to maintain their appearance and psychological behaviour since childhood just
to drive profits is indeed disparaging.

HISTORY
3
The history dates back to the 1990s when a report from California’s Assembly Office Of
Research in 1994 found that 64% of stores in several major cities charged more to wash and
dry-clean a woman’s blouse than a man’s button-up shirt owing to the difference in their size,
pattern and fabric used.To retaliate and voice their opposition, in 1995, California passed the
state-wide Gender Tax Repeal Act wherein it would be illegal for a business to discriminate
with respect to price charged for similar services due to a specific gender. It ensured that
services like hair salons, tailors and dry cleaners charged the same prices for both.
4
In October 2014, Georgette Sands, a women’s rights group based in France launched an
online petition wherein French Supermarkets were held responsible for not selling products at
the same price. The women’s razor was priced at €1.80 whereas the men’s razors were priced
at €1.72. This led to other countries recognising this issue and taking legal action for example
- In 2015, Radio Flyer sold a red scooter for boys and a pink scooter for girls. Despite having
the same features, Target listed the red one for $24.99 and the identical pink one for $49.99,
making them question whether pink was a luxury colour. So Jackie Speier introduced a bill
on the Pink Tax Repeal Act, which came into force on 1st January 2023, stating that product
manufacturers /service providers should be prohibited from selling substantially similar
products at different prices based on the gender of the intended purchaser.
3
https://www.thebalancemoney.com/what-is-the-pink-tax-5202741
4
https://www.thelocal.fr/20141103/french-petition-protests-invisible-womens-tax/
5
Companies like BIC when introduced pens like “BIC For Her” in 2012, showcased the
widespread effects of the daily persistence of consumer disparity among females. The office
supply company introduced new pink pens catering to women specifically which were
significantly increased in price i.e. 70% more in comparison to the company’s other
gender-neutral pens. The product immediately received backlash as the consumers were able
to distinguish that there was no difference between these two and were later discontinued at
the end of 2016. In 2017, their slogans like ‘ Look Like a Girl’, and ‘Think Like a Man’
received much online criticism and eventually the brand was cancelled. In 2004, Kenya was
the first country to abolish sales tax for menstrual products. Following this new change in
policy, many countries and organisations have taken measures to eradicate this issue and to
ensure equal taxation of products. In February 2020, Scotland became the first country in the
world to make period products free for all.

CURRENT SCENARIO

It is a universal truism that a sustainable future is not without gender equality. In 2015,
countries agreed to comprehensive financing for development and adopted a new ambitious
and sustainable development agenda that features 17 new Sustainable Development Goals
and 169 targets to be achieved by 2030. These goals and targets seek to realise the human
rights of all and to achieve gender equality and the empowerment of all women and girls.
Though tampon tax, a catch umbrella term that refers to a tax levied on female sanitary
products, was abolished in the UK, the UK Treasury estimates that an average woman will
get no great deal of benefit out of it as she will save only €40 over her lifetime. Even this
relatively small amount is not likely to be evenly distributed. It more likely has benefited
businesses and women. Menstrual hygiene which already faced cost increases from state
taxes has also been hit by inflation on several fonts. The struggle to keep period products
accessible to all and as much as possible still seems challenging. The inflation around
shipping has increased, the supply chain has broken leading to a shortage in so many places,
and many women went into poverty adding another layer of difficulty for low-income
households as many federal programmes do not cover menstrual supplies. There is a serious
rise in period poverty, a case wherein due to a deficit of menstrual supplies or unaffordable
menstrual supplies, women use alternatives such as diapers, old rags, newspapers, and toilet
paper. Moreover, the Russia - Ukraine conflict has affected pink products as well amongst

5
https://ijpsl.in/wp-content/uploads/2021/03/UnPinking-Discrimination-Exploring-the-Pink-Tax-and-its-Implications_Svasti-Pant.pdf
others.It has led to food insecurity, energy poverty and gender inequality in areas including,
health, personal hygiene, domestic work, education etc. To add to this adversary, the ripple
effects of the war are - the further widening of the pay gap and frequent violation of gender
equality rights leading to exacerbating threats to women’s and girls’ well-being. Efforts are
underway to curb the pink tax. The United Nations has considered this matter and has called
on its member states worldwide to take steps favouring the betterment of women and girls
and a significant increase in their full and equal participation in the economy by introducing
conducive and suitable policies to eliminate pink tax and put this issue to rest for good.

PROPOSED SOLUTIONS

1. Educating the consumers and creating awareness among the female consumers. True
solutions to the persistence of gender price disparity derived from the pink tax have begun
already with legislative movements and public outcry. Still, without the education of female
consumers, society cannot tear down and construct new societal norms that allow for equality
among consumers.

2. Publicising personal experiences and voicing opinions pave the way and encourage other
female consumers to do the same. Numerous hashtags exist to spread the word. #PinkTax and
#GenderTax have had success on outlets such as Twitter in promoting knowledge of the
hidden tax across the globe in countries such as Spain and Ireland.

3. Purchasing Unisex Products can also help women be radical and save money. Voices are
being heard and, while many companies continue to blast advertisements showcasing a
separation of girls’ and boys’ toys with an increase in price for pink, elsewhere, other
companies are creating genderless products including toys, clothes and even unisex perfumes.
The world is becoming far more educated and understanding of gender-bending and this is
impacting the market in a way that impacts the pink tax.
 BLOCK POSITIONS

UK

Having abolished the tampon tax, the government of the UK is looking forward to
implementing new policies to empower women. Though currently it is estimated that this
change will only help an average woman save €40 in her entire lifetime, efforts are being
made to ameliorate their lifestyle. The abolishment of the tampon tax is part of a wider UK
government effort called ‘End the Poverty’. Tax reform policies have been closely paid
attention to keeping explicit and implicit biases in check. Though inflation does threaten the
efficiency of the upcoming policies.

USA

The recently passed bill to enforce The Pink Tax Repeal Act would mandate that any
comparable products that are marketed toward men and women must be priced equally.
California and New York enacted a pink tax ban in 2020. The new law will still allow for
some price disparities in gender-based products providing that there is a significant
differential in cost or length of manufacturing time. More tax reforms are being looked into to
implement better policies to help women and girls lead a better life.

China

In China, the ‘‘Tampon Tax’’ does not have a separate sector in tax treatment. It is included in
the consumption tax and has an equal VAT rate as other consumption such as cigarettes at
13%. Since fewer people can afford good quality tampons, people buy them when there are
huge discounts. People are less aware of gender inequality owing to factors like period shame
and profit maximisation. Menstruation is still surrounded by taboos and stereotypes. More
and more efforts are being made by the government to educate people on this issue.

Russia

The war situation with Ukraine has affected Russia in more than one way- economically,
socially, politically and so on. There has been a sharp hike in energy prices in the EU and
worldwide. The price of fuels rising further, being one of the consequences of Russia’s
unprovoked and unjustified aggression against Ukraine. The European Council threatening to
ban almost 90% of all Russian oil imports and putting economic sanctions on Russia did put
it in a difficult spot. Though its economy keeps shrinking with inflation skyrocketing,
President Putin has pledged to reduce poverty and inequality and increase the quality of
living standards and empower women and girls. It does seem to be a great struggle as citizens
have little faith that the dire situation would turnover anytime soon.

Canada

After a long battle to have the pink tax abolished, finally on July 1 2015, Canada nixed the
GST on the tampon tax after thousands of signatures on petitions urging an end to the tax.
Despite the tampon tax being abolished, the pink tax in general still prevails. Efforts are
being made to design more economically feasible taxation policies to ease the burden on the
female population.

SUGGESTED MODERATED CAUCUS TOPICS

1. Discussing the issue of Period Poverty and ways to help women through it.
2. Discuss the impact of Inflation on the Pink Tax.
3. Discuss possible ways to empower women amidst global stereotypes.
4. Discuss ways to abolish the pink tax and increase gender equality.
5. Addressing the various causes facilitating the pink tax.
6. Discussing the effects of the pink tax on women.
7. Discussing the impact of gender-based pricing.
8. Addressing gender-based wage gaps and ways to reduce them.
9. Analysing the need for countries to abolish pink.
10. Analyse the impact of the pink tax on gender equality and the rights of women.
 RESEARCH LINKS

(Note: Delegates, some of the links are only meant for light reading and thus are not
highlighted, only refer to the highlighted sources as valid proof as others may or may not be
accepted as a source of proof in the Council. The decision of the Presiding Officer in regard
to the acceptable sources is Final and Binding.)

1. https://www.weforum.org/agenda/2022/07/what-is-the-pink-tax-and-how-does-it-
hinder-women/
2. https://www.forbes.com/sites/lawrencelight/2022/02/12/theres-a-pink-tax-on-wom
en/
3. https://thevarsity.ca/2022/01/09/history-and-future-of-pink-tax/
4. https://www.healthline.com/health/the-real-cost-of-pink-tax
5. https://www.ftc.gov/system/files/documents/public_events/1588356/mosharybhati
atuchman_updated2.pdf
6. https://www.investopedia.com/pink-tax-5095458
7. https://www.jec.senate.gov/public/_cache/files/8a42df04-8b6d-4949-b20b-6f40a326d
b9e/the-pink-tax---how-gender-based-pricing-hurts-women-s-buying-power.pdf
8. https://www.vox.com/2016/3/1/11139280/avoid-pink-tax-women
9. https://www.oecd.org/tax/tax-and-gender.htm
10. https://sustainabledevelopment.un.org/index.php?page=view&type=30022&nr=3
242&menu=3170
11. https://www.bbc.com/news/world-32883153
12. https://indianexpress-com.cdn.ampproject.org/v/s/indianexpress.com/article/explained
/why-the-uks-decision-to-abolish-the-tampon-tax-is-significant-7131123/lite/?amp_gs
a=1&amp_js_v=a9&usqp=mq331AQKKAFQArABIIACAw%3D%3D#amp_tf=From
%20%251%24s&aoh=16748275815000&referrer=https%3A%2F%2Fwww.google.co
m&ampshare=https%3A%2F%2Findianexpress.com%2Farticle%2Fexplained%2Fwh
y-the-uks-decision-to-abolish-the-tampon-tax-is-significant-7131123%2F
13. https://edm.parliament.uk/early-day-motion/55690/pink-tax
14. https://www.unwomen.org/en/what-we-do/2030-agenda-for-sustainable-develop
ment
15. https://www.thelocal.fr/20141103/french-petition-protests-invisible-womens-tax/
16. https://www.thebalancemoney.com/what-is-the-pink-tax-5202741
17. https://www.reuters.com/article/us-colour-gender/women-really-do-prefer-pink-r
esearchers-say-idUSL2081187520070820
18. https://ijpsl.in/wp-content/uploads/2021/03/UnPinking-Discrimination-Exploring-the-
Pink-Tax-and-its-Implications_Svasti-Pant.pdf
19. http://research.monm.edu/mjur/files/2020/02/MJUR-i12-2019-Conference-4-Lafferty.
pdf
20. https://www.usatoday.com/story/money/2018/07/26/burger-king-protests-pink-tax-chi
cken-fries/838288002

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