When two law students filed a writ petition in 2021, they were not just questioning tax policies; they were challenging a long-standing disregard for menstrual health. The debate on taxes on sanitary pads is not just about revenue, but about dignity.
For years, Nepal taxed sanitary pads like luxury items instead of treating them as essential health products. The rates included 15% customs duty, 13% Value-Added Tax (VAT), and an extra 1.5% VAT on the customs duty. In just one fiscal year, 2019–20, Nepal earned Rs 645.72 million in revenue from sanitary pad sales alone.
It wasn’t until the 2022–23 budget that the government slightly reduced the burden. Customs duty on finished sanitary pads dropped from 15% to 1.5%, and raw materials from 15% to 1%. Still, women’s rights activists argued that the reforms didn’t go far enough. Imported sanitary pads continued to attract a total of 18% in taxes, with 5% customs duty and 13% VAT. The same applies to raw materials used in making pads locally.
Shreena & Abhyuday: 2 students who changed the narrative
The real turning point came when two law students from Kathmandu School of Law, Shreena Nepal and Abhyuday Bhetwal, filed a writ petition in 2021. They argued that menstrual products were not luxury items but basic necessities, and they should not be taxed.
Their legal action set off a chain of events. During the first court hearing in August 2021, the Supreme Court asked them to seek written responses from four key ministries: Finance, Health and Population, Women and Children, and Law and Justice.
From blood tax to legal win: Nepal’s bold step on taxes on sanitary pads
In June 2025, after nearly four years of legal proceedings, a Supreme Court bench led by Justices Manoj Kumar Sharma and Mahesh Sharma Poudel finally delivered a decisive verdict. The Court ordered the government to remove all taxes on sanitary pads.
Though the full text of the verdict is still awaited, early reactions from industry insiders suggest that the ruling could lower prices significantly. Dol Raj Adhikari, president of the Nepal Sanitary and Diaper Association, explained that prices could drop by as much as 18%. For example, a packet that currently sells for Rs 60 may now cost around Rs 50. He also pointed out that if the tax removal applies to both finished products and raw materials, local manufacturers will benefit. Lower input costs could boost domestic production and possibly allow for future exports.
Global push to make menstruation tax-free
Nepal is not the first country to take such a step. Several nations have already reclassified menstrual products as essential items and removed taxes.
India eliminated its 12% tax on sanitary products in 2018 after months of nationwide protests, petitions, and court cases. The campaign, popularly called Lahu ka Lagaan or “blood tax,” drew massive attention and support, with one petition collecting over 400,000 signatures. Before this, under India’s Goods and Services Tax (GST), sanitary pads were taxed at the same rate as luxury goods.
The Maldives followed suit later that year by making all menstrual products tax-free. Colombia’s Constitutional Court also ruled against a 5% tax on these products in 2018, calling it unconstitutional. It even directed local authorities in Bogotá to provide free menstrual products to homeless women. Then, in 2020, Scotland made menstrual products completely free for anyone who needs them, setting a global benchmark.
Taxes on sanitary pads in India: GST exempt but still out of reach
India scrapped GST on sanitary pads in 2018, but the ground reality hasn’t changed much for consumers. Prices have stayed largely the same, and for many, pads still feel out of reach. The reason lies in the cost of production, not just the end product.
Materials like air-laid paper, super absorbent polymers, glue, and hydrophilic non-woven fabric, essential to the production of sanitary pads, still attract GST rates between 12% and 18%. On average, a single pad requires 12 different raw materials, and with each taxed individually, the costs pile up.
Is the GST relief really making sanitary pads affordable?
Since the finished product is tax-exempt, manufacturers aren’t allowed to charge GST from customers or claim Input Tax Credit (ITC) on what they paid during production. That tax, instead, gets quietly added to the final price, making pads more expensive than they should be, despite the tax exemption. This structure, often called an inverted duty structure, pushes companies to recover costs by increasing the retail price. So, even though sanitary pads are technically tax-free, the hidden tax burden on materials keeps them expensive.
Manufacturers have consistently pointed out that if the Indian government either exempts raw materials from GST or reimburses the tax paid, the market price of sanitary pads could drop by nearly 15%. In a country where just 36% of 355 million menstruating women use sanitary pads, this really matters. The rest often depend on cloth, husk, ash, or other unsafe alternatives simply because pads are too costly. One in ten girls under 21 still turns to such unsafe options.
In our previous article on period poverty and the school dropout crisis in India, we reported how the high cost of menstrual products directly affects girls’ education. Until tax reform tackles the pricing problem at the source (the raw materials), menstrual equity will remain out of reach for many.
The final thoughts: Tax cuts are a start, not the solution
Removing taxes on sanitary pads, in Nepal’s case, was a long-overdue one. It took years of silence, then years of activism, and finally, a legal fight led by two students to get the system to listen. That alone says a lot. However, tax exemption on the final product alone does not ensure affordability. When raw materials remain taxed, the production cost continues to push prices higher.
If menstrual products are to be genuinely accessible, governments must examine the entire cost structure, from input taxes to distribution systems. Otherwise, the promise of affordability will remain incomplete.
This is a wake-up call for governments to rethink tax justice through a gender lens. At Changeincontent, we believe systemic shifts must follow policy wins.
Disclaimer: The views expressed in this article are based on the writer’s insights, supported by data and resources available both online and offline, as applicable. Changeincontent.com is committed to promoting inclusivity across all forms of content. We broadly define inclusivity as media, policies, law, and history, encompassing all elements that influence the lives of women and marginalised individuals. Our goal is to promote understanding and advocate for comprehensive inclusivity.
