Repeal para-tariffs on period products

Originally appeared on The Morning

By Thathsarini Siriwardana

On 2 October, the President’s Media Division announced that the Government had decided to remove all import duties on imported raw materials for domestically-produced sanitary napkins while providing zero VAT benefits for imported finished sanitary napkins. This is yet to be implemented; no gazette has been issued at the time of writing. 

The move to reduce tariffs is positive and doubtless well-intentioned and should be welcomed. These tax revisions will help to reduce the prices of domestically-produced sanitary napkins considerably. Nevertheless, we would have liked to see the tariff cuts on sanitary napkins as part of a broader overall reform of the tariff structure rather than an ad hoc adjustment.

Women constitute just over half of Sri Lanka’s population of 21 million. Of the female population, 5.3 million menstruate. Menstrual products had high tariffs prior to 2018. The total tariff imposed on sanitary napkins was over 101.2% [1] in 2018, but these were gradually reduced. 

The current total tariff on sanitary napkins is 46.9% [2]. Although the current tariffs are much lower, they are still quite high, so access to affordable and safe menstrual products remains a luxury for some women. 

The collapse of the currency and soaring inflation have brought a lot of pressure on household budgets. The Government should try to reduce inflationary pressure through supply-side reforms. Simplifying and standardising the tariff structure will facilitate trade and can reduce costs.

Sanitary napkins are vital for girls and women. High protective tariffs imposed on these products benefit producers, but this is at the expense of consumers. The inability to afford sanitary napkins in Sri Lanka is pervasive, especially among the low-income segment of society.  

Tariffs on menstrual hygiene products

It is clear that in terms of tariffs on menstrual hygiene products, such policy decisions benefit producers. The current total tariff of 46.9% consists of 15% (VAT) + 10% (PAL) + 15% (CESS) [3] and while this is an improvement, prices are still high.

When a protectionist tariff is placed on a good, it will achieve two main things. First, it will act as a barrier for new products entering the domestic market. This lowers competition and reduces the choice available to women when purchasing sanitary napkins. Secondly, high tariffs trickle down to final product prices, resulting in higher prices for both domestically-produced and imported products. 

Sri Lankan women and girls face challenges in choosing a menstrual hygiene product that best suits them. The ability to choose comes with the affordability and the availability of the product. The current high tariff rates hinder the choice of women and girls.

By reducing tariffs, the cost of importing products will decrease while simultaneously creating competition, which will help to reduce the prices. This will encourage new local producers to innovate better quality products while ensuring their prices remain low and competitive in the market. 

Cost analysis of sanitary napkins

A market price analysis of sanitary napkins shows that the average imported price per pad remained more expensive than the most expensive locally-produced price per pad as of September 2022. The currently available cheapest price per pad is Rs. 33. When comparing per-pad price changes within a year, it shows that both prices of local and imported brands have increased by more than 70%. 

Economic factors such as the depreciating exchange rate and high rates of inflation are the main contributors to this vast price increase. The increasing prices are also influenced by the high para-tariffs. Removing the imposed protectionist tariffs on sanitary napkins and menstrual hygiene products will provide some degree of relief for low-income-earning women.

Advocata Institute reported that in 2016 Sri Lanka’s absolute household period poverty rate was approximately 50%. This means that around half of the households with menstruating women do not report buying sanitary napkins as part of their household expenditure. In 2019, Sri Lanka’s absolute household period poverty rate was approximately 40%. Even though this is an improvement compared to 2016, the situation is expected to worsen due to the economic crisis.

To provide relief, the Government should also focus on removing the PAL (10%) and the CESS (15%) imposed on imported sanitary napkins. This will allow competition to enter domestic markets while providing cheaper and healthier options for women. 

Necessary tariff structure reforms

The Sri Lankan tariff structure is complex, disorganised, and comprises a combination of multiple para-tariffs and duties. The current protectionist import tax structure has significant negative effects on exports as well as the domestic economy. 

The International Monetary Fund (IMF) in its Article IV consultation in 2021 stated that high para-tariffs hindered competitiveness and growth [4]. This clearly shows that immediate reforms should be carried out on the Sri Lankan tariff system. 

To begin with, the existing Customs duty and excess para-tariffs such as PAL, VAT, CESS, surcharge, etc. should be unified into a single Customs duty. For a simpler tariff system, a single rate should apply across all categories where possible, within each HS code. A uniform tariff rate should apply for raw materials and components of the industry [5].

Sri Lanka has been a member of multiple international organisations such as the World Trade Organization (WTO) since 1955, the General Agreement on Tariffs and Trade since 1948, and the IMF since 1950, due to which we have to reaffirm commitments to the multilateral trading system. As members of these organisations, we have to adhere to their protocols and commitments to reducing barriers to international trade by eliminating or reducing tariffs and quotas. 

Thathsarini Siriwardana is a Research Assistant at the Advocata Institute. She can be contacted at thathsarini.advocata@gmail.com. The Advocata Institute is an Independent Public Policy Think Tank. The opinions expressed are the authors’ own views. They may not necessarily reflect the views of the Advocata Institute.

Taxes on Essential Products: Bringing The Debate Back to Where It Matters

Originally appeared on Colombo Telegraph, Citizen.lk, The Morning, Lanka Business Online and Daily Mirror

By Aneetha Warusavitarana

Sri Lanka’s exorbitant taxes on sanitary napkins had the media spotlight over the last few weeks - this is not a new issue. In 2018 the total tariffs on sanitary napkins was over 101.2%.  Since then we have seen some progress, with the tax being reduced from 101.2% to its current rate of 52%; a result of several tax revisions.

The 2020 budget revised down general duties for sanitary napkins to 15% and introduced a CESS tax of 15%, causing an uproar in social media and in parliament leading to fresh calls for the abolition of these taxes.  

Menstrual hygiene products are essential for girls and women, and this issue has put the interests of these consumers who want more variety and cheaper products against the interests of the local producers who want larger margins. Since the initial uproar last week, there have been claims that the local brands account for 95% of the local market and therefore import taxes do not have a bearing on the market price.  

Bringing the debate back to where it matters: impact on women

It is clear that for this issue, policy decisions have to be taken with the best interests of the consumer at heart - in this case, the millions of menstruating women. 

At the most basic level of analysis, when protectionist tariffs are placed on a good, it is the consumer who loses out. The tariffs will achieve two things: they will limit the range of products that enter the domestic market, and they will raise the prices of both imported products and locally manufactured products. How so? The inputs into the local production process are also taxed, which raises production costs, and therefore raises the final price of the locally manufactured product. Additionally, the tariff raises the price of the imported product, which allows local producers to raise their prices and keep substantial margins. In other words - tariffs cause both the locally produced goods and the imported goods to be sold at a higher price. 

These tariffs are also keeping more affordable options out of the market. At the time of writing, locally manufactured products can range in price (per pad) from LKR 11 to LKR 19. However, cheap imported alternatives are not available. For example, Indian supermarkets have products at the equivalent of LKR 5. The tariffs may not be deterring higher-priced imports from entering the market, but it could be possible that this is happening with more affordable imported options - it makes little sense to bring in a cheaper product if the tariff raises your costs to the point where you have to price the final good at the same price point as your more expensive product.

Will removing the tax only affect high-income earners?

An argument leveled against the removal of the tax has been that imported products are often out of reach of the average Sri Lankan woman, and as such has little relevance as a policy decision. This argument has also been coupled with the statement that as locally manufactured products exist, and women do purchase them - why should we care about bringing in imports? 

The example provided above makes it clear that removing the tax would actually bring more affordable products into the market. This is also where the importance of choice comes to play. Each woman will have different requirements at different points in their life. This is compounded by the fact that menstruation is often accompanied by pain and discomfort, which can range from mildly annoying to debilitating. In short, one size does not fit all when it comes to menstrual hygiene products. In response to this fact, the global industry has innovated - period cups, period underwear, reusable pads and more. These tariffs should be removed, and Sri Lankan women should also be given access to these choices. 

Economic Rents

By now it should be clear that there is only one winner, and it is not the millions of menstruating women. The basic explanation of the impact protectionist tariffs have is that they serve to benefit local producers, that are few in number. They shield them from the competition and allow them to price well above marginal costs. A classic case of ‘rent-seeking’ behaviour, where a company lobbies to secure itself protection in order to charge a higher price. The result is that the local consumer loses out. 

There is one area where the producer's complaints do have merits - that is the tariffs placed on their inputs.  Much of the input that goes into the production of sanitary napkins are also taxed.  The government should look into reducing these costs to help the local manufacturers stay price competitive.  

Given this, there is a clear call to reform - prioritise the requirements of women, and remove the taxes imposed on the final good and on the inputs into the production of these goods.

Aneetha Warusavitarana is the Research Manager at the Advocata Institute and can be contacted at aneetha@advocata.org or @AneethaW on Twitter. Learn more about Advocata’s work at www.advocata.org. The opinions expressed are the author's own views. They may not necessarily reflect the views of the Advocata Institute, or anyone affiliated with the institute.

Advocata Policy Brief: Sri Lanka should reduce taxes levied on menstrual hygiene essentials

52% of Sri Lanka’s population is female, with approximately 5.7 million menstruating women. However, for many Sri Lankan women, access to safe and affordable menstrual hygiene products has become a luxury. In light of the continued unaffordability of menstrual hygiene products for women in Sri Lanka, the Advocata Institute proposes a few policy recommendations.

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Are We Finally Done Taxing Aunty Flo?

Originally published in Colombo Telegraph, Pulse, Economy Next, The Island, Daily FT, Ceylon Today, Kolomthota

By Nishtha Chadha

One of the most talked-about election promises this week has been Sajith Premadasa’s promise to distribute free sanitary hygiene products. Labelling himself as a #padman, Premadasa tweeted that “until sustainable cost-effective alternatives are found” he promises to provide sanitary hygiene products free of charge.

Indeed, access to menstrual hygiene products is a serious problem in Sri Lanka and has become a popular issue across political parties. In March this year, SLPP’s Namal Rajapaksa also tweeted about the issue, asking “What rationale could a Gov have to tax half it’s populace on a dire necessity? Is the Gov aware of studies on poor hygiene practices & cervical cancer?”

Taxing menstrual hygiene

Although 52% of Sri Lanka’s population is female, with approximately 4.2 million menstruating women, access to safe and affordable menstrual hygiene products remains somewhat of a luxury for many Sri Lankan women. A leading contributor to the unaffordability of menstrual hygiene products in Sri Lanka is the taxes levied on imported menstrual hygiene products. Sanitary napkins and tampons are taxed under the HS code HS 96190010 and the import tariff levied on these products is 62.6%. Until September 2018, the tax on sanitary napkins was 101.2%.

The components of this structure were Gen Duty (30%) + VAT (15%) + PAL (7.5%) + NBT (2%) and CESS (30% or Rs.300/kg). In September 2018, following social media outrage against the exorbitant tax, the CESS component of this tax was repealed by the Minister of Finance. Yet, despite the removal of the CESS levy, sanitary napkins and tampons continue to remain unaffordable and out of reach for the vast majority of Sri Lankan women.

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Figure 1: Breakdown of taxation structure (before September 2018)

General Duty     VAT     PAL     NBT     CESS    Total                                                

      30%        15%     7.5%     2%     30%    101.2%            

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The average woman has her period for around 5 days and will use 4 pads a day. Under the previous taxation scheme, this would cost a woman LKR 520 a month. The estimated average monthly household income of the households in the poorest 20% in Sri Lanka is LKR 14,843. To these households, the monthly cost of menstrual hygiene products would therefore make up 3.5% of their expenses. In comparison, the percentage of expenditure for this income category on clothing is around 4.4%.

Internationally, repeals on menstrual hygiene product taxation are becoming increasingly common due to their proliferation of gender inequality and the resulting unaffordability of essential care items, commonly known as ‘period poverty’. Kenya was the first country to abolish sales tax for menstrual products in 2004 and countries including Australia, Canada, India, Ireland and Malaysia have all followed suit in recent years.

The impact of unaffordability

The current cost of menstrual hygiene products in Sri Lanka has direct implications on girls’ education, health and employment.

Source: Menstrual Hygiene Management In Schools In South Asia, Wash Matters, 2018.

According to a 2015 analysis of 720 adolescent girls and 282 female teachers in Kalutara district, 60% of parents refuse to send their girls to school during periods of menstruation. Moreover, in a survey of adolescent Sri Lankan girls, slightly more than a third claimed to miss school because of menstruation. When asked to explain why, 68% to 81% cited pain and physical discomfort and 23% to 40% cited fear of staining clothes.

Inaccessibility of menstrual hygiene products also results in the use of makeshift, unhygienic replacements, which have direct implications on menstrual hygiene management (MHM). Poor MHM can result in serious reproductive tract infections. A study on cervical cancer risk factors in India has found a direct link between the use of cloth during menstruation (a common substitute for sanitary napkins) and the development of cervical cancer; the second-most common type of cancer among Sri Lankan women today.

The unaffordability of menstrual hygiene products is also proven to have direct consequences on women’s participation in the labor force. A study on apparel sector workers in Bangladesh found that providing subsidized menstrual hygiene products resulted in a drop in absenteeism of female workers and an increase in overall productivity.

Towards a sustainable solution

If the Government is serious about finding sustainable solutions to the issues associated with unaffordability of menstrual hygiene products in Sri Lanka and promoting gender equality, it should be looking to slash the heavy import taxes currently levied on these products. Current taxation rates are keeping prices high and out of reach for a majority of Sri Lankan women. By reducing these rates, the cost of importing sanitary napkins and tampons will simultaneously decrease and stimulate competition in the industry, further driving prices down and encouraging innovation.

The conventional argument in favour of import tariffs is the protection of the local industry. However, in Sri Lanka, sanitary napkin exports only contribute a mere Rs. 25.16 million, or 0.001%, to total exports. Increased market competition would also incentivise local manufacturers to innovate better quality products and ensure their prices remain competitive for consumers.

Other common concerns pertaining to the issue of low-quality products potentially flooding the Sri Lankan market if taxation is reduced are unlikely to materialise since quality standards are already imposed by the Sri Lankan government on imported products under SLS 111.

In addition, making these products more affordable would align with Sri Lanka’s commitment to Article 12(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR), which promotes the right of all individuals to enjoy the highest attainable standard of physical and mental health. By keeping prices high, present taxation methods are contributing systematic obstruction of many women’s right to equal opportunity to enjoy the highest attainable level of health, and thereby do not meet the ratified standards of the ICESCR.

If menstrual hygiene products are made more affordable, it is likely that more Sri Lankan women will be able to uptake their use. Sri Lanka should thus remove the remaining import levies on menstrual hygiene products as soon as possible, via the means of an extraordinary gazette. Removing the PAL and General Duty components alone would bring taxation levels down by 43.9% to a total of 18.7%. This would remove a significant barrier to girls education, women’s health and labour force participation, and create a wide-scale positive impact on closing Sri Lanka’s present gender gap and facilitating more inclusive economic growth. There has been a lot of rhetoric around keeping women safe and making them a priority this election – so what better place to start than this?

පීරියඩ්ස් වලට ( ඔසප් වීමට ) බදු ගහන ආණ්ඩු

අනුකි ප්‍රේමචන්ද්‍ර 

කාන්තවන්ගේ ඔසප් වීමට සාමාන්‍යයෙන් කියන්නෙ පීරියඩ්ස් කියල. 

කාන්තාවන්ගේ සාමාන්‍ය පීරියඩ්ස් වලට අසාමාන්‍ය බදු ගැසීමට සහ ඔසප් වීම පිළිබඳ ඇති මිත්‍යා මතවලට එරෙහිව නැගිටිය යුතු කාලයයි. 

ඔබ බොහෝවිට මේ ගැන නොදන්නවා වෙන්නට පුලුවන්. ශ්‍රී ලංකාවේ ඔසප් වීම පිළිබඳව සහ ඔසප් සනීපාරක්ෂාව පිළිබඳව සමාජයේ ඇති කතිකාවත එටරම්ම ගැම්බුරු නැහැ. එමනිසා සමහර විට ශ්‍රී ලාංකාවේ කාන්තාවන්ට ඔසප් වෙනවාද යන තරමටම අපේ සමාජ කතිකාවත ප්‍රාථමිකයි.  ඇත්තටම කතාව තමයි ශ්‍රී ලංකාවේ කාන්තවන්ගේ ඔසප් සනීපාර්ක්ෂාව ඉතාම දුර්වලයි. ඔසප් වීම සහ ඔසප් සනීපාර්ක්ෂාව පිළිබඳ අධ්‍යාපනය අඩු වීම, සමාජයේ ඔසප් වීම පිළිබඳ තිබෙන මිථ්‍යා මත වගේම විවෘතව මේ මාතෘකාව කථා කිරීමට බිය වීමම දුර්වල ඔසප් සනීපාක්ෂව ඇති වීමට හේතු කිහිපයක්. 

දුර්වල ඔසප් සනීපාරක්ෂාව නිසා බොහෝ ශ්‍රී ලාංකික කාන්තාවන් අනෙක් රටවල් වල කාන්තාවන්ට වඩා සිටින්නේ පිටුපසින්. 

ශ්‍රී ලංකාවේ සනීපාර්ක්ෂකතුවා භාවිතය සලකන්නේ සුභෝගභෝගී භාණ්ඩයක් විදියටයි. එහෙමත් නැත්තම් කලු වෙළඳපොලේ විකිනෙන භාණ්ඩයක් ලෙසටයි. 

ශ්‍රී ලංකාව තුල සනීපාරක්ෂක තුවා සහ කාන්තා සනීපාරක්ෂාව පිළිබඳ මිත්‍යා මත සහ සමාජ පීඩනය නිසා දිනපතාම සනීපාර්ක්ෂාව අතින් අපි අත්ත දුප්පත් තත්වයට පත්වෙමින් තිබෙනවා. 

ඔසප් සනීපාර්ක්ෂාවෙන් දුගීවීම 

ඔසප් සනීපාර්ක්ෂාවෙන් දුගීවීම කියන්නෙ කාන්තාවන්ගේ සනීපාර්ක්ෂාවට වියදම් කිරීම මිල අධික වීම සහ එම වියදම් දරා ගැනීමට අපහසු වීමයි. 

ශ්‍රී ලංකාව මෙම ප්‍රශ්ණයට තදින්ම මුහුණ දෙන රටක්. සාමාන්‍යයෙන් වෙළඳපොලේ සනීපාර්ක්ෂක තුවා විකිනෙන්නේ රු. 120 - 175 ත් අතර මිලකටයි. ආනයනය කරන වෙළඳ නාම රු. 350 දක්වා මිලකටයි අලෙවි කරන්නේ. එම නිසා  ආනයනික සනීපාරක්ෂක තුවා මිලදී ගැනීම කාන්තවන්ට සිහිනයක් පමණක් මෙන්ම එය සුපෝගභෝගී භාණ්ඩයක් බවට පත් කර තීබෙනවා. 

ආනයනික සනීපාරක්ෂක තුවා එතරම් මිල අධික වීමට ප්‍රධාන හේතුව රජය අයකරන අසීමාන්තික සහ අසාධාරණ බදු ප්‍රමානයයි.  

2018 සැප්තැම්බර් මාසයේ සනීපාරක්ෂක තුවා සඳහා අය කරන මුලු බදු ප්‍රමාණය 102% සිට 62% දක්වා මුදල් අමාත්‍යතුමා අඩු කරනු ලැබුවේ එවකට පැවති සෙස් බද්ධ ඉවත් කිරීමෙන්. මෑතකදී මුදල් අමාත්‍ය මංගල සමරවීර මැතිතුමා රොයිටර් පුවත් සේවයට ප්‍රකාශ කර තිබුනේ පාසල් දැරියන්ගේ සහ කාන්තාවන් ආර්ථිකයට එකතු කර ගැනීමට කාන්තා සනීපාරක්ෂාවට පනවා ඇති ඉතිරි බදු ප්‍රමාණයත් ඉවත් කරන බවයි. 

සාමාන්‍යයෙන් කාන්තාවක් තම ජීවිත කාලය තුල දින 2535 ආර්තව කාල නැතහොත් ඔසප් කාල ගත කරනු ලබනවා. එක්වර බැලූ බැල්මට එය එතරම් දීර්ඝ කාලයෙක් ලෙස නොපෙනුනත් එය වසර හතක පමණ දීර්ඝ කාලයක්. කාන්තවකට ඉතා අවම සනීපාර්ක්ෂක තත්ව යටතේ ඔසප් කාල වලදී සනීපාරක්ෂකතුවා වල මිල අධික වීම නිසා රෙදි කඩවල් භාවිතයට තල්ලු කිරීම සාධාරණ යැයි ඔබ සිතනවාද? 

සනීපාරක්ෂක තුවා සුපෝගභෝගී භාණ්ඩයක් බවට පත්වීම ඉතාම කණගාටුදායක තත්වයක්. මිලෙන් වැඩි අත් ඔරලෝසු සහ සුවඳ විලවුන් සුපෝගභෝගී භාණ්ඩ ලෙස සැලකෙන්නේ එම භාණ්ඩ සමාජයේ ඉහළ ආදායමක් උපයන පිරිසට පමණක් මිලදී ගත හැකි නිසයි. පවතින බදු ක්‍රමය දැන් සනීපාරක්ෂක තුවා සුපෝගභෝගී භාණ්ඩයක් බවට පත් කර තිබෙනවා. 

මෙම වසරේ කාන්තාවන්ගේ ඔසප් සනීපාරක්ෂාව පිළිබඳ ජාත්‍යන්තර දිනයේ තේමාව "ඔසප් වීම කාන්තවාට බලපායි" යන්නයි. පසුගිය සතියක ප්‍රසිද්ධ ඉරිදා පුවත්පතක පල කර තිබුනේ නාගරීකරණය වීම සමඟ දැන් "නවීන" කාන්ථාවන් මහදවල් සුපිරි වෙළඳසැල් වලින් සනීපාරක්ෂක තුවා මිළඳී ගන්නා බවයි. එම පුවත් පත් වාර්ථාවට අනුව කලින් කාන්තාවන් සනීපාරක්ෂක තුවා මිලදී ගත්තේ ඉතාම රහසිගතව සහ බ්‍රවුන් පේපර් කවරයකින් එතීමෙන් අනතුරුවයි. එයින් තහවුරු වන කාරණයනම් තවමත් සනීපාරක්ෂකතුවා විවෘතව මිලදී ගැනීම අනුමත නොකරන බවයි.

අවාසනාවට කරුණ නම් අපි පිළිගැනීමට අකමැති වුවත් ලිපියේ කතෘ දරණ මතයම සමාජයේ තවත් බොහෝ දෙනා දැරීමයි. මම පසුගිය දිනක නුවර සිට නැවත කොළඹ පැමිණෙන අතර මඟ සාමාන්‍ය සිල්ලර කඩයෙකින් සනීපාර්ක්ෂක තුවායක් මිලදී ගත්විට කඩයේ මුදලාලි මෙම සනීපාක්ෂක තුවාය කඩදාසි ගණාවකින් ඔතා ඉතාම රහසිගත ලබාදුන්නේ හරියට මම ඔසප්  කාලයක් පසුකිරීම මහා අපරාධයක් ලෙස සලකමිනුයි.ඔසප්භාවය ගැන කථාකරන විට සමහරු සංස්කෘතියට බනිනවා. සමහරු සමායයේ තිබෙන මිථ්‍යා මතවලට දොක් නගනවා. නමුත් අවසාන ප්‍රතිථලය මිලියන 10.5 තරම් කාන්තාවන් ආර්ථව චක්‍ර දිළිඳුභාවයට පත්වීමයි. 

ඔසප්  චක්‍ර පිළිබඳව ගැරහීම ආර්ථව දිළිඳුබව ඇති කරන්නේ කොහොමද? 

සනීපාර්ක්ෂක තුවා සැඟවමින් විකුනන මේ සෙල්ලම ඔසප්  චක්‍ර පිළිබඳව වැරදි මත ගණනාවක් සමාජගත කරනවා. හරියට කාන්තාව මත් කුඩු මිලදී ගන්න තත්වයට සනීපාරක්ෂක තුවායක් මිලඳී ගැනීම සමාන කරනවා. කාන්තාවකට මෙතරම් අත්‍යාවශ්‍ය භාණ්ඩයක් කලු කඩයේ විකුණන තත්වයට සමාජයේ ඇති කුමන හෙතුවක් පත් කලත් එහි අවසාන ප්‍රතිඵලය වෙන්නේ කාන්තාවන් සනීපාරක්ෂක තුවා මිලඳී ගැනීමට භය වීම සහ අධෛර්‍යට පත් වීමයි. සනීපාර්ක්ෂක තුවා පිළිබඳ සමාජයේ ඇති දුර්මතවල කොතරම් බරපතලද කියනවනම් වෙළදසැල් වල මෙය විකුනන්නේ සඟවාගෙනයි. එයම හේතුවක් වෙනවා කන්තවන් එම සනීපාර්ක්ෂක තුවා වල මිල, ප්‍රමතිය පිළිබඳ විවෘතව කථා නොකිරීමට. ඕනෑම මාතෘකාවක් සඟවා කතාකිරීමෙන් මෙවැනි තත්වයක් ඇතිවීම වැලැක්විය නොහැකියි. අපි ඇකමැති සනීපාරක්ෂක තුවා සන්නාම අපිට අකමත්තෙන් වැඩි මිලකට, අඩු විවිදත්වයක් සහිතව ගැනීමට සිදුවීම මෙහි අවසන් ප්‍රතිඵලයයි. 

ශ්‍රී ලංකාවේ සනීපාරක්ෂක තුවා වෙළඳපොළ දේශීය වශයෙන් නිපදවන සන්නාම කිහිපයක් මඟින් අත්පත් කරගෙන තිබෙනවා. එම දේශීය වෙළඳනාම වලට ආර්ක්ෂාව සැපයීම සඳහා ආනයනික සනීපාරක්ෂක තුවා සඳහා ඉතා ඉහල ආනයනික බද්දක් අය කරනවා. අපගේ අසල්වැසි ඉන්දියාව සමඟ සැසඳීමෙදී අපගේ රටේ විකිණෙන සනීපාරක්ෂක තුවා වල විවිධත්වය ඉතාම අවමයි. එක් එක් කාන්ත්වාට අවශ්‍යා සනීපාරක්ෂක තුවා වර්ග එකිනෙකට වෙනස්. එය තීරණය වන්නේ එම කාත්වාගේ කායික සොභාවය සහ ලක්ෂණ අනුවයි. 

සනීපාරක්ෂකතුවා කලු වෙළඳපොළේ විකිනෙණ භාණ්ඩයක් ලෙස සැලකෙන නිසා ලෝකයේ අනිත් වෙළඳපොලවල් වල දක්නට ලැබෙන නැවත සේදිය හැකි සනීපාරක්ෂක තුවා, කාබනික කපු වලින් නිපදවෙන සනීපාරක්ෂකතුවා, නැවත භාවිතාකලහැකි සනීපාරක්ෂක තුවා ලෙස ඇති විවිධ නිෂ්පාධන  කාණ්ඩ දැක ගැනීමට නොහැකියි. අපිට උදාවී තිබෙන තත්වය තමයි අපිට නොගැලපෙන, අපි ඇකමැති සනීපාරක්ෂක තුවා වැඩි මිලකට මිලට ගැනීම. මේ පිළිබඳව හඩක් නගන්නටවත් කවුරුවත් එක්නොවෙන තරමට සමාජ මතය සනීපාරක්ෂතතුවා මහා රහසිගත කලුකඩ භාන්ඩයක් කර හමාරයි. 

නැහැ, ඔබ මිලදීගන්නා සනීපාරක්ෂක තුවා පැකැට්ටුව කොලවලින් ඔතා ලබාගැනීමට තරම් රහසිගත සහ භයානක මත්කුඩු වර්ගයක් නොවෙයි.

නැහැ, අසීමිත ලෙස බදු ගසා සමාජයේ කිහිපදෙනෙකුට පමණක් මිලදී ගැනීමට හැකිවන ලෙස ඉතා ඉහල මිලකට අලෙවි කලයුතු භාණ්ඩයක් නොවේ සනීපාරක්ෂකතුවා.

කාන්තාවක් විදියට මම ඔබෙන් කාරුණිකව ආයාචනා කරන්වා කාන්තවනේ ඔසප් වීම පිළිබඳ විවෘත සංවාදයකට එකතුවන්න කියල. සමාජයේ ඔසප් වීම පිළිබඳ දුර්මත සහ විකාර මත වෙනස් කරන්න අපි එකතු වෙමු. සනීපාරක්ෂක තුවා සුපෝගභෝගී භාණ්ඩයක් නොවෙයි. ඔසප් වීම සාමාන්‍ය ජීව ක්‍රියාවලියක් වෙද්දි සනීපාරක්ෂක තුවා සුපෝගභෝගී කිරීම හරිම අසාධාරණ නැද්ද?

View this article in English here.

It’s bloody unfair!

Originally appeared on Daily FT, Ceylon Today, The Island and Daily Mirror

By Anuki Premachandra

Today (28) is Menstrual Hygiene Day. Most of you might not be aware of it because in Sri Lanka, we pretend that women don’t bleed. 

Poor menstrual hygiene is caused by a lack of education on the issue, persisting taboos and stigma, limited access to hygienic menstrual products and poor sanitation infrastructure that undermines the educational opportunities, health and overall social status of women and girls around the world. As a result, millions of women and girls are kept from reaching their full potential. 

In Sri Lanka, we treat access to menstrual products as both a luxury and a black market good. Steeped in social stigma, the negative characterization of these necessities have overwhelmingly resulted in a growing prevalence of ‘Period Poverty’. 

Period Poverty isn’t just another term 

Period Poverty refers to having a lack of access to sanitary products due to financial constraints. This problem is quite serious in the case of Sri Lanka. Commercially produced sanitary towels typically sell between Rs. 120-175. Imported brands can go up to Rs. 350, putting them out of reach for most women, thereby making it a luxury for some. 

The heavy tax on sanitary napkins is a key contributor to these disproportionately high prices. 

In September 2018, the Minister of Finance reduced the tax on sanitary napkins to 62% from 102%, following the removal of the CESS tax. The Minister for Finance Mangala Samaraweera recently mentioned in a Reuters article that he was looking at ways to reduce the tax further as he recognises the effect of period poverty on girl’s school attendance and the participation of women in the economy. 

The average woman has her period for 2,535 days of her life. That’s nearly seven years of depending on unhygienic cloth rags and makeshift solutions if sanitary napkins are beyond your financial reach. 

This is a classic characteristic of a luxury good. Expensive watches or perfumes are only within the purchasing power of some, because only they are rich enough to afford it. 

Unfortunately sanitary napkins have fallen to the same misfortune. Is it justifiable that something so essential as a pad is something that only those with financial capacity can afford? 

This year’s tagline is ‘Menstruation Matters’ and could not be more relevant to Sri Lanka. A few weeks ago, a Sunday newspaper ran an article on urbanisation that expressed views on how the ‘modern’ woman buys sanitary napkins in this country – indeed, a round peg in a square hole. Nonetheless, it is interesting to analyse the thinking behind this narrative. 

The writer explains how women in modern society now purchase their sanitary napkins in broad daylight over supermarket counters, instead of the sanitary napkins being sold wrapped in newspaper or brown bags in efforts to hide the identity of the product. There is clear disapproval of purchasing sanitary napkins out in open! 

Unfortunately, the ideal transaction etiquette the writer holds dear is more common in Sri Lanka than we’d like to accept. A few weeks ago, when I purchased a packet of sanitary napkins in Kandy, the grocery uncle went to great lengths to wrap my purchase up in newspaper, because god forbid if someone finds out I’m on my period, right? Some blame culture, some blame our values – but the result of this stigma is the imminence of ‘Period Poverty,’ which 10.5 million women in our country are burdened with. 

How does stigmatising our periods aggravate Period Poverty?

This little charade of hiding your pads and the norms which reinforce this act makes it almost seem like you’re buying a boxful of heroin, and not pads. 

Treating a product this essential like you would a good sold in the black market means that the social stigma around periods extends to the purchase of sanitary napkins. 

The stigma is so strong that stores don’t sell the product without masking its identity, women don’t openly discuss the purchase of this product, leading us to accept the product as it is, without questioning its price or quality merely due to the lack of open conversation. We’re made to accept whatever that is sold to us – at a higher price and with little variety. 

The local sanitary napkin market is dominated in Sri Lanka by a few brands. The protection of these brands is also why there is such a huge tax on the imports. When compared to supermarket aisles in India, Sri Lankan aisles carry very limited variances of the product. 

The demand for specific types of sanitary napkins differ from woman to woman – our physiologies are different. We barely see pads that are for example, organic cotton, washable and reusable, etc. in our aisles because when we treat pads as a black market product, we’ve put ourselves in a situation where we’ve just got to accept whatever that is available in our reach!

No, your pads are not a packet of drugs whose identity needs to be masked and sealed. No, it is not fair that pads are made expensive (through taxes and very minimal competition) to the point that only a selected few can afford them. 

This Menstrual Hygiene Day, I urge you to start having open conversations about issues of this nature. We need to change this narrative. Pads should not be a luxury. Period. 

View this article in Sinhala here.

The cost of being a Sri Lankan (woman)

Originally appeared on Sunday Observer

By Anuki Premachandra

Being a Sri Lankan woman is not easy. From having to constantly battle gender stereotypes and rebel gender roles, women also have to burden the financial cost of something that is beyond them; the exorbitant costs of sanitary pads and tampons. With a population that is 52% women, you’d think that we’d know better than to tax a woman’s necessity, but we don't.

Earlier this year, the Advocata Institute revealed some data and statistics on the import taxes on sanitary napkins, which were being taxed at a total of 101.2%. It was our Fellow, Deane Jayamanne who shed light on the absurdity of taxes on diapers and sanitary napkins, both practical necessities. This tax structure is not only a reflection of poor public policy, but also a testament to how little we’ve progressed as a society. Taxing a women’s necessity so heavily (it is treated as a luxury) does not reflect well on our policy choices, especially when our progressive neighbor, India recently scrapped a 12% GST (Goods and Services Tax) on sanitary towels.

A breakdown of the tax system is as follows:

At least one could say that we know better now. On that revolutionary note, in a statement last week, the Finance Minister has stated that the CESS on sanitary pads will finally be removed. However, the issue of protective taxes is much larger than just this, and needs immediate attention.

HOW TAXES WORK

In Sri Lanka, a lot of our daily necessities, from food to household products are imported. This is true in the case of sanitary napkins and tampons as well. In an ideal sense, this should allow us to take advantage of global efficiencies to source the cheapest or best products, depending on what people want. Unfortunately high taxes and poor trade policies only end in driving up the price of these products in the market.

Some of the taxes generate revenue for the government but many are imposed to protect local industry. Tariff protection for local industry comes at a cost: high prices for consumers.

In textbook terms, higher prices of imports means that consumers switch to locally produced products, boosting local business. However, a ripple effect of import taxes is that local producers can now sell their products at high profit margins because the selling price of the competing imported product is raised by the taxes - this is unfortunately the case of sanitary towels and many other household products in Sri Lanka.

Our Resident fellow, Ravi Ratnasabapathy highlighted the absurdity of taxes on commonly used household products in his latest column on the Echelon Business Magazine. Import taxes for cereal adds up to 101%, fruit juices to 107%, noodles to 101%, aftershave to 120% , toothpaste to 107%, etc etc. The list continues.

Lifting the taxes on sanitary pads is a signal that as consumers and citizens, we still have hope. Hope, that government authorities realise the absurdity of taxing daily consumption. Sri Lankan’s are literally taxed to go about their daily lives, from the toothpaste you use to brush your teeth in the morning to the ingredients that go into your daily buth packet, our taxes are absurd.

Price protection for local industry is a blunt tool that hurts consumers and incubates inefficiency.

Government support for industry should be directed away from tariff protection towards efficiency improvements: to  upgrade technology, worker skills, improve access to capital, R&D and infrastructure.

These, together with more efficient government processes, improved infrastructure, more advanced research institutions-in short a healthier business environment; can yield long term productivity gains for the economy and the firm.