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5d ago

Pakistan Zero-Rates Sales Tax on Sanitary Products and Removes Tax on Contraceptives

Credited to a constitutional petition by two young lawyers, the budget move signals official recognition of menstrual health as essential while major tariff and access barriers remain to be addressed.

Pakistan's Finance Minister Muhammad Aurangzeb (center) announced the planned removal of the 18% sales tax on sanitary pads and contraceptives in the country's fiscal budget last week.
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Overview

  • The federal budget for 2026-27 officially zero-rated the 18% sales tax on sanitary products and removed taxes on contraceptives, with the exemptions set to take effect on July 1, 2026.
  • The change is widely credited to a constitutional petition brought by lawyers Mahnoor Omer and Ahsan Jehangir Khan, and the related court case remains active with final arguments pending.
  • Before the budget change, locally made pads faced an 18% sales tax and imported pads and raw materials faced a 25% customs duty, a structure UNICEF and NGOs say pushed the effective tax burden on period products close to 40%.
  • Campaigners are pressing the government to remove customs duties on raw materials, require manufacturers to pass price reductions to consumers, and expand free distribution and price-monitoring to reach the most vulnerable.
  • Advocates and UN agencies welcomed the budget decision for its health and dignity implications, but they warn that low commercial-pad use (about 12% per UNICEF) and remaining tariffs mean the measure alone will not end period poverty.