Jakarta. An Indonesian consumer advocacy group has urged the government to abolish value-added tax (VAT) on sanitary pads and other menstrual hygiene products, arguing that taxing essential biological needs disproportionately burdens low-income women and widens economic inequality.

The Indonesian Consumers Foundation (YLKI) said menstrual products should not be treated as luxury goods because women cannot avoid buying them.

YLKI chairwoman Niti Emiliana said the government's tax policy should consider public health, affordability, consumer protection, and gender equality.

“The tax burden is not felt equally by all consumers. Women from low-income families and vulnerable groups could face greater difficulties in meeting their menstrual needs,” Niti said on Friday.

She urged the government to explore alternative ways of increasing state revenue, including expanding the tax base, improving taxpayer compliance, and closing budget leakages, rather than taxing essential consumer goods.

“The state should not lack ideas and creativity in collecting taxes to the point that women's basic necessities become taxable goods. Tax policy should prioritize social justice, affordability, consumer protection, and gender equality,” she said.

YLKI called on the government to revise existing tax regulations to exempt sanitary pads from VAT and develop a more progressive revenue strategy that does not place additional burdens on vulnerable groups.

The appeal comes as the Directorate General of Taxes maintains that sanitary pads sold in Indonesia are subject to VAT under the country's existing tax framework.

Director of Tax Education, Services and Public Relations Inge Diana Rismawanti said sanitary pads are classified as taxable goods, provided their sale meets the applicable tax requirements.

Under Indonesia's current system, non-luxury goods are subject to a headline VAT rate of 12%, with a tax base calculated at 11/12 of the selling price, resulting in an effective rate of 11%.

Inge said VAT exemptions are currently limited to specific categories of goods stipulated by law, and menstrual hygiene products are not included.

She rejected the characterization of the tax as one specifically targeting women or menstruation, saying it forms part of the general VAT system applied to consumer goods.

“VAT on sanitary pads is not a tax specifically imposed on women or menstruation, but part of the VAT system applicable to the consumption of goods under existing tax regulations,” Inge said.

She added that menstrual hygiene products available on the market vary in characteristics and added value, meaning any discussion about their tax treatment should consider product specifications, existing tax regulations and their broader impact on society.

Indonesia is not alone in debating the taxation of menstrual products, often referred to as the “tampon tax.” Several countries have reduced or eliminated sales taxes on sanitary pads and tampons, recognizing them as essential products.

Kenya became an early pioneer in 2004 by abolishing taxes on menstrual products. Australia, Canada, and India have also eliminated national-level sales or consumption taxes on these goods.

Germany reduced its VAT on menstrual products from 19% to 7% in 2020 after reclassifying them as essential items.

However, tax rates remain high in parts of Europe. Hungary applies a 27% VAT rate to menstrual products, while Denmark and Sweden impose rates of 25% and Greece 24%.

YLKI said Indonesia should reconsider its approach to ensure that taxation does not make essential menstrual products less affordable, particularly for women from economically disadvantaged households.

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