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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