Pink Tax: What Does Color Have to Do With Tax?
Pink for girls and blue for boys. It's just an old stereotype. No harm, no foul. Right? Not quite. While gender-specific colours may seem harmless, the hidden costs that come with it are anything but!
In the consumer goods and services industry, this seemingly innocent difference in colour can have a costly impact. Welcome to the world of the "Pink Tax". Although the term itself was coined in 1994, the phenomenon can be traced back to the 1920s. It started with small things like charging more for the cleanup of a woman's blouse than a man's shirt. No kidding! As per a 1994 report, around 64% of stores in California were doing this.
Ever notice how a pink razor costs more than a blue one? Or that pink floral shampoo is pricier than the black musk one? It's not your imagination; it's gender-based price discrimination, and it's a scam. For those of you who still don't think it exists, here’s proof:
1. Gillette's disposable razor for men costs ₹88 for 5, but for women, it's ₹89 for 1.
2. Yardley's perfume gift set for men offers 20 ml * 4 for just ₹849. While the price for the women's set is the same, it offers only 15 ml * 4. So, women get less product for the same amount of money.
3. Dove's anti-dandruff solutions for men come in a 2-in-1 packaging of “shampoo + conditioner", costing ₹800 for 650 ml. No need to buy conditioner separately. For women, a similar solution costs ₹950, with only 175 ml conditioner.
4. Jockey’s no-show socks for men cost ₹239 for 2 pairs, but women have to pay ₹258 for the same.
And these are just a few examples. So, let’s break down what this so-called Pink Tax is and how it works.
What Exactly is the Pink Tax?
Let me tell you what it's not: A government tax. It is a term for the extra money women have to pay for everyday products and services. And for those thinking, “Extra money = Extra benefits”, you are sorely mistaken.
Women, on average, pay 7% more for basically the same products and services as their male counterparts.
Here’s the “Why?” of it. The pink tax is based on the idea that women are willing— or have no choice but—to pay more for gender-targeted items.
It's a global phenomenon, and 77% of Indians don't even realise that it's happening. Some would argue that these price gaps are because male and female-centric products are made differently. They may use different ingredients or target different concerns. But, this rational explanation only applies to certain products. At the risk of sounding like a broken record, what's the pink razor’s excuse?
I say these price gaps are a testament to the existence of the pink tax. You may disagree, but the numbers don’t lie. However, the question remains, “If the government does not levy pink tax, who does?" The ultimate winners of this pricing game are the manufacturers, retailers and even service providers.
By wrapping products in pink, they create a perception that these products are specially designed for women, justifying higher prices. Often it is just a marketing strategy to line their pockets.
How to Save Yourself from the Pink Tax?
At this point, the pink tax may seem unavoidable, but you can fight it. By changing some of your shopping habits, you can minimise—or even avoid—the extra costs. Here’s how:
a. Compare Prices: Check the price differences between similar "male" and "female" products. Sometimes, buying the "men's" version saves you money.
b. Buy Neutral Options: Look for brands that don't charge gender-specific prices. When possible, choose unisex products, as they are often priced more reasonably.
c. Skip the “Pink": If you don't need a product specifically designed for women, skip it! A standard blue or black razor, for instance, will do the same job but typically costs less.
d. Question Service Charges: When paying for services like haircuts or dry cleaning, ask why women's services cost more and consider providers that don't use gender-based pricing.
With a few mindful changes, you can keep the pink tax from impacting your budget. After all, the decision on where you spend your money lies in your hands.
The Economic Impact of Pink Tax in India
Here’s a shocker: India has one of the lowest levels of economic parity at only 39.8%, as per the Global Gender Gap Report 2024. This means that for every ₹100 earned by a man, women earn ₹39.8 for the same work. So, women get paid less, and their products are more expensive.
Combine the pink tax with pay parity, and you see the gender disparities widening. As a result, it becomes harder for women to save, invest or build wealth. It's not just a higher bill at the end of the checkout line. This is the cost of lost investment opportunities and reduced financial security for women.
It's a lifetime of extra that subtly reinforces gender stereotypes. It conditions your brain to think that women's products and services are "worth" more. That a woman's needs are more of a luxury than a need or a right.
Despite these challenges, women's participation in the workforce has risen from 23.3% in 2017-18 to 37% in 2022-23. As of March 2024, women are earning an average salary of ~₹15 lakh annually. Only ~0.21x lower than a man's average annual salary of ₹19 lakh. A decade ago, this difference was the average salary of male employees was 4x more than female employees. We have come a long way!
Moreover, there have been several global efforts to level the playing field:
- New York State passed a law banning gender-based pricing for consumer goods and services in 2020.
- The issue is being petitioned in Canada as activists and consumer protection groups push for legislation to close pricing gaps.
India does not charge extra tax for women-specific products. Not since 2018, when menstrual products which were previously taxed at 12% under GST, were exempted completely. This move was a response to widespread advocacy against the so-called "tampon tax”. Which classified essential hygiene products as luxury items. India won the battle against one unfair gender-specific tax.
However, there are still no laws against the pink tax. And even with only 23% of India being aware of the pink tax, it is a highly debated issue.
Do you think India might also launch its own anti-pink tax movement soon? Let us know in the comments!
The Bottom Line
The pink tax may not be a legitimate tax, but it exists. This hidden expense impacts a woman's entire life, earnings and savings. It also reinforces gender stereotypes ("Patriarchy at work here", one might scoff).
It raises significant legal concerns under the Indian Constitution. Several regulations prohibit discrimination on various grounds, including sex in India. The existence of the pink tax, however subtle, can be seen as a violation of these fundamental rights.
The existence of the Pink Tax can be waved away with rationalisations like:
- Aren't women's products just different?
- Isn't it simply about supply and demand?
- Doesn’t it cost more to produce these items?
- Shouldn’t people be willing to pay more for personalised products?
But we don’t know for sure. In the end, pink or blue, a razor is just a razor, and women shouldn't have to pay extra just because of their gender. Do you still believe that the pink tax doesn't exist? Let me know in the comments!
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