This March, in celebration of International Women’s Day (March 8th), we decided to compile a list of tax innovations aimed at women.
We have been hearing for some time that women pay more taxes. It this possible? Does the Constitution not guarantee equal rights? Does the Tax System not prescribe the principle of tax equality, prohibiting discrimination in differentiated taxation? So, how can women pay more taxes than men?
The answer is simple. Our current tax system concentrates taxation on consumption, calculated on the price of products/services, causing a regressive order of taxes and allowing, proportionally, that the poor pay more taxes than the rich, for example. The principle of contribution capacity ends up not being observed, and this demands attention to the urgency and need for reform on the taxation of income versus consumption.
Now, considering that products/services aimed at women are more expensive – yes, the pink toy costs more than the blue toy, the pink razor is more expensive than the blue one, for example (have you noticed that?) – and the same tax applies to them, proportionally women do pay more taxes than men in our country.
And here comes the famous expression of the Pink Tax, which allows proportionally greater taxation on feminine products/services. Female items are more expensive (such as sanitary pads, contraceptives, hygiene, beauty and makeup products) and those that are mostly purchased by women who are usually those that bear the household expenses with basic home products since they dedicate more time taking care of the home.
According to the results of the study “Tax reform and gender inequality: contextualization and proposals”, prepared by the study group Taxation and Gender, from the Tax Law Center of the Professional Master’s Degree at Fundação Getúlio Vargas in São Paulo, the tax burden on sanitary pads hygiene, for example, is 27.5% (an average of 18% ICMS, 1.65% PIS and 7.60% Cofins). Did you know that countless young people stop attending school or work because they can’t afford sanitary pads?
Is this fair?
The topic of gender equality has never been more current. The fight for an egalitarian society, in rights and obligations, without distinction of gender and race, is stronger today and we are beginning to see, not only in feminist movements, a careful look at issues aimed at eliminating this inequality.
And where does Tax Reform fit into this topic?
Tax Law is not just a fundraising instrument to support the state machine. It is also an instrument of tax justice. Within this concept, after much discussion, we obtained special attention in the discussions in Congress and, now, we have in the Federal Constitution, by virtue of Amendment nº 132/2023, the legalization of the principles of simplicity, transparency, tax justice, cooperation and defense of the environment.
This first stage of the Tax Reform focused on simplifying consumption taxation. In the institution of Contribution and Tax on Goods and Services (CBS and IBS), the complementary law may provide for different regimes, observing the promotion of equality between men and women. It is now constitutionally determined that basic menstrual health care products and hygiene and cleaning products consumed by low-income families will benefit from a 60% reduction in tax rates. And the creation of the National Basic Food Basket will have products listed by complementary legislation taxed at a zero rate.
Have we solved all our problems? Of course. There is still a lot to be regulated by the complementary law, in addition to the need to continue the tax reform on income. It is necessary to raise awareness of the female role in society, with debates and discussions for a more inclusive and isonomic tax policy, applied for the purpose of achieving tax justice.