Menstrual Hygiene Day: Advocata Institute recommends tariff removal for sanitary napkins

PRESS RELEASE

Originally appeared in the Daily News, Daily Mirror and Adaderana

The Advocata Institute recommends that the government removes the tax levied on menstrual hygiene products for women, this Menstrual Hygiene Day. The female population in Sri Lanka is 52% of the total population, with approximately 4.2 million menstruating women. However, for many Sri Lankan women, access to safe and affordable menstrual hygiene products has become a luxury. A main contributor to the unaffordability of menstrual hygiene products in Sri Lanka is the taxes levied on imported menstrual hygiene products. The Advocata Institute explores this issue in-depth in a newly released policy brief, which can be found on their website www.advocata.org.

Sanitary napkins and tampons are taxed under the HS code HS 96190010. The import tariff levied on these products is 52%, and 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). 

Calculations made by the Advocata Institute through the Tariff Calculator, Customs Department of Sri Lanka.

The removal of this significant barrier to girls' education, women’s health and labour force participation will create a wide-scale positive impact on closing Sri Lanka’s present gender gap and facilitate more inclusive economic growth. 

Key Recommendations

In light of the continued unaffordability of menstrual hygiene products for women in Sri Lanka, the Advocata Institute proposes the following policy recommendations:

• The Ministry of Finance should remove PAL (10%) and General Duty (30%) components from the current taxation structure pertaining to essential menstrual hygiene products in Sri Lanka, bringing the total tax levied on these products down to 8%.

• The Ministry of Finance should declare the reduction in taxes through the means of an extraordinary gazette. 

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

Advocata spokespersons are available for live and pre-recorded broadcast interviews via 077 4858401.

Advocata Institute commends the increase in testing, and calls on the government to review barriers to purchasing of tests.

PRESS RELEASE

Originally appeared in the Daily News, Daily Mirror and Lanka Business Online

The Advocata Institute has previously highlighted the importance of expanding testing capacity with the engagement of the private sector. The government’s decision to increase the country’s testing capacity to 1000 tests a day, by utilising the capacity that exists in private hospitals is commendable.

On the 22nd of April, the government opened up the majority of the country, by removing the curfew between the hours of 5.00 am and 8.00 pm. The districts of Colombo, Gampaha, Kalutara and Puttalam, as high-risk regions remain under curfew till the 27th of April. This lifting of curfew has been accompanied by a series of regulations in order to ensure that physical distancing and other safety measures are adhered to. As Sri Lanka moves away from curfew to a more relaxed lockdown, increased testing is vital. This is in line with recommendations from the World Health Organisation (WHO), which has consistently called for increases in testing.

While the increase to 1000 tests per day is a welcome increase, Sri Lanka needs to expand testing beyond this. With the rise of asymptomatic cases, testing is essential to effectively tackle Covid-19. The government should work to utilize the full capacity of the country’s health sector; both state and private. The government should review NMRA and other government guidelines to ensure that there are no barriers to easy and low-cost procurement. The removal of the price control on testing is a key part of this - as the price control does not account for the costs of medical personnel, personal protective equipment and other overheads such as safe disposal of waste. The state sector will be able to continue conducting free tests, and the expansion of capacity in the private sector will relieve some of the burden on the state.

Removing these barriers will increase the availability of test kits and the government will be able to open up for voluntary testing. In this scenario, where employers and employees can even enter cost-sharing agreements for testing, and individuals can independently get tested, you widen the net of testing and ease the burden on the state sector. Voluntary testing would also help allow for a safer gradual opening of the economy.

Key points

• The Advocata Institute welcomes the government’s decision to partner with the private sector and increase testing capacity to 1000 tests per day.

• Barriers to efficient procurement of tests should be removed immediately, including the existing price control. The goal should be to effectively utilise the country’s entire health sector; both state and private.

• Allow for voluntary testing through the private sector, in order to increase testing numbers and reduce stress on the state system.

Getting private sector involved is essential to rapidly expand Sri Lanka’s testing capacity for Covid-19

PRESS RELEASE

Originally appeared in the Daily FT, Daily News, The Island and Ceylon Today

In dealing with the Covid-19 crisis,  the government has placed most of Sri Lanka under curfew.  This is to mandate a ‘physical distancing’ strategy to slow the transmission of the novel coronavirus and to reduce the proliferation of new cases. This gives space for the country’s health system to cope with the potential influx of Covid-19 patients.

Curfews cannot go on forever.  In this initial phase, it is essential that the government uses this period to ramp up the healthcare infrastructure in the country to safely treat both Covid-19 patients and others requiring care.  As has been emphasised by medical professionals and the Government Medical Officers’ Association (GMOA), it is particularly important that the government uses this time to increase the country’s testing capacity to effectively test those with symptoms and their close contacts.  

The “trace - test - treat” method has shown to be effective in countries such as South Korea and others which have faced up relatively well to this public health crisis.  The government’s decision on 31st March to expand testing to check for community transmission is a step in the right direction. Currently, guidelines for testing (interim case definitions) as directed by the Epidemiology Unit limit testing to individuals with acute respiratory illness who have either had contact with a confirmed Covid-19 patient, or have travelled abroad in the last 14 days. Patients with acute pneumonia (not explainable by any other aetiology) and are presenting symptoms, can also get tested, if a doctor sees fit. The definition was expanded to include individuals experiencing fever and respiratory distress, but this definition will need to be broadened, to ensure that individuals with milder symptoms also have access to testing. 

Sri Lanka has currently tested only 2277 cases,  or 87 per million people.  Countries such as South Korea have tested 410,564 cases or 7971.04 per million people.  The United States, initially lagging and summarily criticised for its Covid-19 response has dramatically increased testing over the last few weeks with over 1 million tests being conducted to date and over 100,000 being conducted every day.  “Trace - test - treat” is now emerging as a policy consensus to deal effectively with the crisis. 

When looking at current testing capacity, in addition to the government sector, and universities, the private sector currently has only three laboratories that are equipped to conduct PCR testing. While private sector testing for Covid-19 was initially not allowed, this restriction has now been lifted. The government should work to coordinate with the private sector, and with universities to improve testing capacity, as well as to tap into private sector access to supply chains and technical know-how on new testing options. Given that Sri Lanka has limited fiscal space to face up to the crisis,  the government should prioritize the test and trace in its engagement with donors for funding. 

It is useful to think of the necessary policy responses to the Covid-19 crisis in phases. In this first phase of containment, the focus should be on practicing physical distancing, and expanding the capacity to test. There is an economic trade off that takes place, while the country expands testing capacity. This economic burden is not one that will be sustainable for much longer, and the government has to act swiftly. With adequate testing it is possible for the country to move to the next policy phase, where limited economic activity can be allowed, with strict physical distancing practices and widespread testing continued. 

The Advocata Institute recommends that the government gives due priority to expanding testing capacity in the country. 

• As an immediate measure, utilise testing capacity that exists in universities and in the private sector.

• Engage with the private sector to identify barriers to the import of rapid testing kits, and facilitate where possible. 

• Update the interim case definition issued by the Epidemiology Unit, to ensure that effective community testing can take place.