MENSTRUAL HEALTH & HYGIENE WEB-DIALOGUES 2019 ......of sanitary napkin, SRO issued on 30 June 2019 Implementation Challenge Immediately calls upon manufactures in collaboration with

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W A S H U N I T E D - M E N S T R U A L H Y G I E N E D AYW AT E R A I D I N D I A , D E V E L O P M E N T S O L U T I O N S - M E N S T R U A L H E A LT H A L L I A N C E I N D I A& PA R T N E R S

MENSTRUAL HEALTH & HYGIENE WEB-DIALOGUES2019/2020

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SettingtheScene•  WhyscrappingthePeriodTax:TanyaDargan(DevelopmentSolutionsfor

MenstrualHealthAllianceIndia)•  GlobalResearch:InaJurga(WASHUnited)andDavidRuell,TaxExpertCaseStudies(5minuteseach)•  India:ArundatiMuralidharan(WaterAidIndia)•  Tanzania:PriyaSippy(WaterAidTanzaniafortheMHMCoalitionTanzania)•  Bangladesh:AbdullahAl-Muyeed(WaterAidBangladesh)•  Zimbabwe:ClemenceMachadu(SanitaryAidZimbabwe)•  Kenya/Rwanda:NatachaMugeni(Kasha)•  Indiaprivatesector:Jaydeep(AakarInnovations)

Discussionandquestions&commentsfromaudience(15minutes)

Tax from the lens of health, gender equity, and rights

•  Addontopricetoconsumer(MENSTRUATORS)•  Limitedmarginsforretail–limitingaccessTAX on Menstrual Products

Access to quality products Normalising menstruation

•  LimitsACCESSIBILITYandAFFORDABILITYofqualitymenstrualproducts

•  NormalizemenstruationinthepolicydiscourseàinformationonSRHoverreproductivelife-cycle

Dignified Menstruation Information,productsandfacilitiestoensurehealthy,

dignifiedandsafemenstruation

SDG3:HealthUniversalaccesstoSRHR

services

SDG4:EducationEliminategenderdisparities,ensuregendersensitive

facilities

SDG5:GenderEqualityInformeddecisionsby15-49year

oldwomenonSRHLaws/regulationsguaranteeingaccesstoSRHRIECandcarefor

15-49yearoldwomen

SDG6:CleanWaterandSanitation

Accesstoadequateandequitablesanitationand

hygieneforall

SDG12:Sustainableproductionandconsumption

Reducewastegenerationthroughprevention,reduction,

recyclingandreuse

Tax from the lens of health, gender equity, and rights

SDG10Inequalities

Eliminatingdiscriminatorylaws,policiesandpracticesand

promotingappropriatelegislation,policiesandaction

Strategy

The“campaign”catalysestheglobalmomentumtoabolishtaxesonmenstrualsuppliesbyü  creatingaglobalmapofcurrenttaxesincountrieson

menstrualsuppliestoenablepeer-pressureongovernments;ü  supportongoingcampaignsandenablingcampaignsin

additionalcountriesbyencouragingactiviststoconnectandsharingexperiencesaswellaslessonsfromsuccessfulcampaigns.

ü  CompilinganAdvocacyGuideandwebsite

SCRAPTHEPERIODTAXCAMPAIGN

www.periodtax.org

fundedbyRHSCInnovationFund

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Tax overview

Asof01.01.2020

Databaseontaxationformenstrualproducts,andgeneraltaxationsystemfor173countries

www.periodtax.org (upcoming)

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Asof01.01.2020

Databaseoncurrentandsuccessfulcampaigns,innovativecampaignexamples

Campaigns overview

www.periodtax.org (upcoming)

Further Ask & Hypothesis

Abolishtaxesonmenstrualsuppliestomakealltypesofmenstrualsuppliesmoreaffordableforwomen

andgirls.

Research

Ultimate Ask

Abolishunfairand(oftenunconstitutional)taxesonanitemofbasicnecessityforallpeoplewhomenstruate!

SCRAPTHEPERIODTAXCAMPAIGN

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•  DidtheVATremovalorreductionleadtocheaperpricesformenstrualproducts?

•  Ifno,whynot?•  Lookingbeyondtheprices•  Developrecommendationsforcampaigners

Globalandnationaltaxsystemsaswellasmarketsarecomplicatedanddiffer–campaignersandevenpolicymakersmightnotfullyunderstandthem.Getsupportfromalocaltaxexperttounderstandyournationaltaxsystem!

Research

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DidtheVATremovalorreductionleadtocheaperpricesformenstrualproducts?

FindingsareinconsistentandthereislimitedrobustdocumentationonconsumerpricesbeforeandafterVATremovalorreduction.Theinformationavailablefromsomecountriessuggestsithasonlyanegligibleorsmalleffectonthefinalprices.Thisequalsfindingsontaxexemptionsorremovalsforotherconsumerproductsandservices.

Research

Taxreduction19%7%

PriceReduction(Jan2020)11%

Exceptions:USA(SalesTax)andGermany

Whynot?Whatarereasons?

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Introduction:HowdoestheVATsystemworkingeneral?

Research

Sellstherawmaterialsandchargesaprice+VAT

Sellstheproductandchargesaprice+VAT

Sellstheproductandchargesaprice+VAT

PassesVATtothestate

PassesVATtothestate

PassesVATtothestate

ClaimsrefundforpaidVAT(„inputtax“)

Claimsrefundforinputtax

ConsumerspaythepriceandfinallybearVAT

Whynot?Whatarereasons?

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KEYREASON1:VATreductionisturnedintoprofitalongthesupplychain

Research

Fromthissecondstageon,apriceuptotheformersumofprice+VATmightbechargedalongthesupplychain.

Whynot?Whatarereasons?

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KEYREASON2:MarketStructurematters

CopenhagenEconomics(2007):StudyonreducedVATappliedtogoodsandservicesintheMemberStatesoftheEuropeanUnion:•  Inafullycompetitivemarket,VATchangesarepassedentirelythroughtoconsumers

•  Inalesscompetitivemarket,VATchangesarenotpassedentirelyandnotconsistentlythroughtoconsumersintheshorttomediumrun.

LMIC:TransporttoremoteareasSmallkiosks

Research

Whynot?Whatarereasons?

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ReductionZero-RatingvsExemption

Research

KEYREASON3:Typeoftaxscrapmatters

Producersbuytheserawmaterials.Iftherearenoexceptions,theypayVATonthematerials.Cantheydeductthis„inputtax“?

Thisdependsonthelegalnatureofthereduction:Incaseofazero-ratingofmenstrualproducts,producersareabletodeducttheirinputtax;incaseofanexemptiontheyarenotandpassonthisburden.

Lookingbeyondtheprice

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•  VATReductionasaninstrumenttostimulatedemandforspecificproductsorservicesIdeatobediscussed:taxreductiononsustainablemenstrualhygieneproducts?

•  VATReductionstimulatelocalmarketsorincreaseemployment•  Zimbabwetocounterbalancehighinflation

•  Tanzaniaproposingareductionincorporateincometaxfornewinvestorsinsanitarypadproduction.

•  Evenifthepriceislowered,willtheybeaffordableforthehardcorepoor?•  Kenya&Scotland&India:PadDistributiontoschoolgirls•  SouthAfricastudy:->needsadditionalinstruments

Research

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Adviceforcampaigners 1.  Acampaignontaxeswillcreatealotofattentionformenstrual

health&hygieneandbringsnewallies(media,activistsoutsidethedevelopmentsector).

2.Focusprimarilyonrightsandequality3.Ifyouwantinadditionmakeacaseforcosts,understandthe

marketandthecurrenttaxsystem.YES,ANDconsideraccountabilityandcompliancemechanisms.

Thesecomplementarymeasurescouldbe:•  Pressuringproducersandlargeretailerstopassthroughthecost

reduction,suchasthroughpubliccommitments.•  Advocatingforapriceindicationonproductpackaging.•  Thegovernmentmakingclearlawssurroundingproducerandretailer

complianceandholdingthemaccountableforapass-through.

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Adviceforcampaigners(cont.) 4.Therearealsofurthercreativemeasures,especiallyin

caseswhereitislegallynotpossibletoreducetaxesanyfurther,suchas:

•  Taxincomebystatebeingchannelledintoafundearmarkedspendingonwomenandgirls,ideallyonmenstrualhealthandhygiene(UK).

•  RetailerscoveringtheVATremovalortaxdifference(UK,SouthAfrica)

5.Consideradvocatingforadditionaloralternativepolicytoolsformakingproductsmoreaccessibleandaffordable,especiallyforthehard-corepoor.

•  Paddistributiontoschools•  Taxreclaim/vouchers•  ...Moreideastobediscussedlater

.

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CaseStudies

Advocatesandprivatesectorperspective

India’ssuccessfulScraptheTaxcampaign

GoIannounces12%taxonsanitarypads

CongressMPlaunchedcampaignaskingFinance

Ministertoexemptsanitarypadsfrom

GST

July–GoImakessanitarypads

exemptfromtax

2017 2018

ArundatiMuralidharan|ManagerPolicyIWaterAidIndiaforMHAI

VAT exemption on sanitary productions in Tanzania

•  In 2018, Govt of Tanzania announced the decision to remove VAT from sanitary products after a Menstrual Hygiene Day event in Dodoma, organized by the MHM coalition in Tanzania – one of the advocacy asks was to remove VAT.

•  After monitoring the situation, it was found that the exemption had not made a significant difference in pricing – this was mainly due to retailers not reducing their margin.

•  Retailers do this to make their sales profitable as menstrual

product sales are slow and stock turnover can take a long time. The market for products is not reaching its potential.

•  Research showed that there is a lack of of consumer and trade awareness about different products, trade and retail pricing.

What now? -  We launched a campaign ‘Pedi Bila Kodi’ to ask

Govt to keep the VAT exemption but it was removed.

-  Now working with the coalition to continue research into the supply chain, we will continue to lobby for VAT exemption.

-  Submitted a report to govt which included several recommendations, such as creating national distribution networks, starting a national campaign to raise awareness, and working with private sector to influence retail price.

PriyaSippyICommunicationsandCampaignsManagerIWaterAidTanzaniaforMHMCoalition

Success Achieved Tax exemption on imported raw materials of sanitary napkin, SRO issued on 30 June 2019

Implementation Challenge Immediately calls upon manufactures in collaboration with the WASH network

Enabling Environment sector’s collaborative effort, roundtable, tv talk-shows etc.

Our Commitment VAT should be exempted all through the chain, safe and dignified periods for every woman, achieve SDGs

AbdullahAl-MuyeedIHeadofPolicyandAdvocacyIWaterAidBangladesh

TaxexemptioneffortsonmenstrualproductsinBangladesh

Context Analysis 43% Adolescent girls & 29% Adult women use disposable pads during menstruation* *NHS 2018

Burden of Tax The total tax incidence on sanitary pad was staggering 127.84%* at the maximum *

How to reduce? CD, AIT and VAT deduction will reduce TTI to 56%, local vat 15% and sales tax 5% can easily be deducted

Concerted Effort Policy Brief to NBR: Zero tax recommended, Tax Repealing campaign: commitment from NBR

Success Achieved: SRO issued on 30 June 2019

Implementation Challenge Immediately calls upon manufactures in collaboration with the WASH network

Enabling Environment sector’s collaborative effort, roundtable, tv talk-shows etc. TV Talk show

Our Commitment VAT should be exempted all through the chain, safe and dignified periods for every woman, achieve SDGs

! Policy brief to NBR

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Keyquestions:•  Whatwerekeycampaignstrategies,activitiesandallies?•  Whathappendpostreduction?•  Lessons-learned&advicetoothercampaigners

ClemenceMachaduIPolicyandAdvocacyOfficerISanitaryAidZimbabwe

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NatachaMugeniIHealthCoordinatorIKasha

Weneed:KashaWebsite Kasha.rw&Kasha.co.ke

●  Differentplatformstofacilitatethedistributionandthedelivery

●  Ensureaffordabilityandaccessibility●  Adeepunderstandingandaccountabilityfromthe

manufacturerstotheretailers●  Productswithinformation●  Morevarietiesandchoicesforwomen●  Taxexemptionisagoodstepbutweneedtodomore

Rawmaterials:•  SanitaryPadsbasicmaterialsGSTslabs:

Nonwoven(PP)-12%,PerforatedSheet(PE)-18%,BackSheet(PE)-18%,WoodPulp-12%,Gum-18%,ReleasePaper-12%,SAP/SAPPaper-18%,Air-laidPaper-18%,Pouch(Cover)-18%

•  AsGSTonSanitaryPadsisZero,Manufacturerswon’tbeabletorealiseGSTcreditonrawmaterials,sothiswillbeaddedtotheproductcost

•  AllimportedSanitaryPadsaredutyfree,sonoseparateGSTpaidontherawmaterials-Sothecostis12-18%cheaperthanIndianproducedpads

•  CompostablekeymaterialsareimportedfromEurope/USAwithminimum25-47%importduty

SanitaryPads-GSTimplications-Amanufacturer’sperspective

JaydeepMandalIFounder&CEOIAakarInnovationsPvt.Ltd.

Manufacturesizematters

•  Smallmanufacturer:AlmostnooptionsforoffsettingGSTcreditonRM.ProductCostismajorityofSalesPrice.

•  Largemanufacturer:HavemanyoptionsforoffsettingGSTcreditonRMfromotherproducts.ProductCostisminimalofSalesPrice.

Conclusions

•  AsSanitaryPadsRawMaterialshaveseveralothercommercialuses,currentIndianTAXlawsarenothelpingonSanitaryPadsconsumerpricing.

•  Importregulationsneedtobelookedatforthebenefitoflocalmanufacturers;Compostable/Naturalmaterialsshouldbedutyfree.

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Whatareyourquestionstotheexperts?

Whatareyourviewsand

experiences?

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ArundatiMuralidharan,ManagerPolicy,WaterAidIndia E-Mail:[email protected]

JaydeepMandal,AakarInnovationsPvt.Ltd.E-mail:[email protected]

ClemenceMachadu,PolicyandAdvocacyOfficer,SanitaryAidZimbabweE-mail:[email protected]

NatachaMugeni,HealthCoordinator,KashaE-mail:[email protected]

PriyaSippy,CommunicationsandCampaignsManager,WaterAidTanzaniafornationalMHMCoalitionEmail:[email protected]

AbdullahAl-Muyeed,HeadofPolicyandAdvocacy,WaterAidBangladeshE-Mail:[email protected]

TanyaDargan,SeniorConsultant,DevelopmentSolutionsEmail:[email protected]

InaJurga,InternationalCoordinatorMHDay,WASHUnitedEmail:[email protected]

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THANKYOU!

Recordingtobesharedonhttps://menstrualhygieneday.org/mhh-web-dialogues-2019-2020/

andviaemail