Why is it expensive to be a woman in India? The ‘Pink Tax’ Perspective

Pink for girls, Blue for boys– something we have all been aware of for a long time! Pink is a colour of passion, kindness, and innocence. But did you know that this same colour that symbolises femininity, has been attached to a long-time inequality?

Yes, we are talking about the ‘Pink’ Tax!

It is a common disparity in the tax structure in products that target women. Meaning, that women might end up spending more for a similar product when compared to a man. Doesn’t this feel like a gender bias? Of course it does!

Let’s spread gender-discrimination awareness this Women’s Day, 8th March 2025! 

In this article, we will cover what is a Pink Tax, its history, causes, and tips to avoid the tax for women in India.

Let’s dive in!

What is a Pink Tax?

Often, men and women use similar products on a day-to-day basis. However, many times, the products that are targeted and advertised towards women may attract a higher tax. This disparity is referred to as the ‘Pink Tax’.

To clarify, the ‘Pink Tax’ is not an official tax imposed by the government. Essentially, it is an extra price, often unnoticed, paid on similar usage products differently marketed for men and women, with women’s products being more expensive.

These disparities have been a topic of discussion for the past few decades, and they exist in many sectors! However, personal care products are the most noticeable products that discriminate in pricing across genders.

Let’s compare the prices of some common products from the same brand, priced differently for women and men:

Brand	Women’s products	Man’s products
Gillette Razor	₹475	₹198
Fogg Deo 120ml	₹222	₹198
Nivea Shower Gel 500ml	₹417	₹296

Source: Online marketplaces: Flipkart, Amazon

Now you know what we are talking about!

Not fair, right?

This problem exists worldwide!

Did you know that Pink Tax is a legal pricing practice?

Origins of Pink Tax

The term ‘Pink Tax’ was first used in 1994 in California, when it was noticed that brands in various cities often overcharged women for similar goods and services for men. For example, the price differential in a woman’s haircut was at least 50% more than that of men. This colour-based pricing strategy that has been in practice for decades has bifurcated pink products for women and blue products for men.

And, as time passed it became more noticeable.

Common Reasons Behind the Pink Tax

Many factors influence the existence of this Pink Tax in India and globally. Let’s have a look at a few of them.

• Gender-based marketing: Producers may market products in a way that exploits women’s psychology, shopping preferences, and lifestyle choices to maximise profits. Corporations take advantage of skewed feminine choices and often use overenthusiastic marketing strategies to promote their products to women. For example, a simple face wash is promoted as a ‘must-have for glowing skin,’ a marketing gimmick that women may be more inclined to purchase.
• Women’s purchasing power: With more educated and working women, their purchasing power has increased. Their increasing purchasing power motivates manufacturers to sell products they are more likely to purchase. For example, many personal appliance brands now cater to ‘working women essentials’ with products like ‘on-the-go hair straighteners/curlers.’

• Cost of production: Some manufacturers argue that the cost of producing the same good for women is different from that for men. Businesses suggest that women tend to pay for the ‘looks and appearance’ of a product and therefore considerable expenditure is made to ensure the product’s appearance and aesthetics are ‘women-friendly.’ For example, a female razor might be made with brighter-colored materials and more expensive packaging.
• Modified packaging: Companies make sure they package their products in pink or shades of pink to attract women. This is the most common way of charging the pink tax.
• Limited awareness of ‘Pink Tax’: Up to 67% of people in India had not heard of ‘Pink Tax’. The public widely came to know about it in 2018 when there was heavily protesting against the government-imposed 12% GST (Goods and Services Tax) on sanitary napkins, called a ‘tampon tax’.

How to avoid the Pink Tax?

While many countries have taken initiatives to minimise or remove pink taxes from their systems, it will take time for the whole world to catch up.

So, here are a few tips you can consider:

• Spend wisely: Understanding product usage, and end consumption goals helps. Compare prices across different products, if you feel a more affordable product can solve your problem, choose that.
• Embrace unisex products: Sometimes, there is no such thing as ‘for women’ or ‘for men’. It may just be a marketing move to lure women in. To avoid this, consider opting for unisex products and challenge the idea of gender-specific products.

• Spread awareness: It is important to spread awareness on the ‘pink tax’ which often goes ignored by us women too! The more aware women are, the less effective this pricing strategy will be.
• Support home-grown ethical brands: These home-grown and ethical brands are likely to be inclusive and would eliminate gender-based price discrimination.

Conclusion

With significant developments incoming through the Union Budget 2025, addressing the issues of gender price discrimination is becoming vital. Women need to be more aware of this inequality so that they can make informed buying decisions too. Maybe, a gender equality in pricing is a small step to be taken, in a bigger picture!

DISCLAIMER: This article is not meant to be giving financial advice. Please seek a registered financial advisor for any investments.