Tampon Tax Abolished on January 1, 2019
Eighteen years after its introduction, the 10% tax on tampons and pads was removed after states and territories agreed to make sanitary products exempt from the GST. The exemption also applies to menstrual cups, maternity pads and leak-proof underwear.
Although the tax only raised $30 million a year in GST revenue, it was highly unpopular with women. The tax was deemed a ‘sexist tax’ as condoms and Viagra used by men are exempt.
Kenya was the first country in the world to scrap a tax on menstrual products in 2004, while Canada dumped the tax in 2015. In 2022, Britain will scrap the VAT (similar to GST) on tampons.
Posted in accounting, tax accounting