Proposed budget seeks VAT exemption on sanitary napkin production

To ensure the reproductive health protection of women and girls, Finance Minister AHM Mustafa Kamal has proposed a VAT exemption -- at local manufacturing stage -- on the production of sanitary napkins and import of certain raw materials for producing pads.

He made the proposal while presenting the budget for the fiscal year 2021-22 today.

"Two years' extension of existing VAT exemption has also been proposed on import of certain raw materials used for the production of sanitary napkin and diaper," he added.

According to the manufacturers of sanitary napkin, while importing raw materials for producing sanitary napkins, they need to pay different types of taxes, such as customs duty (CD), regulatory duty (RD), supplementary duty (SD) and government-imposed advance income tax (AIT) and value-added tax (VAT).

And thus, the price of the product, once in stores, remains beyond the purchasing power of women and girls from the lower-income groups, they added.