By 2022, sanitary pads, tampons and menstrual cups could have a zero VAT rate, this as part of the fiscal miscellany project proposed by the Executive in the new Economic Package on menstrual management products.
As part of the 2022 Economic Package, dozens of products could change their value within the Mexican market thanks to the proposed changes to the Law of Value Added Tax, the Law of Special Tax on Production and Services, the Federal Law of Tax on Automobiles New, and others.
One of those that stands out the most within the amendments to the VAT Law is one on menstruation, a natural function of the female gender and which is part of a monthly cycle.
The proposal
The proposal is that menstrual hygiene products are subject to VAT at the rate of 0 percent, this under an addition of a subsection (Item j) to section I of article 20.A of the same law, which would mean a decrease in the price of these products at the points of sale.
“To attend to this natural process, there are sanitary products on the market, such as towels, tampons and sanitary cups for menstrual use. These products are subject to VAT at the rate of 16%. Taxing the products that attend menstruation means that this tax has an economic impact on women due to a biological and natural condition of the female gender ”, details the Miscellaneous Decree Project, according to Forbes Mexico.
Likewise, it is indicated that this 16 percent tax for the use of menstrual hygiene products mainly affects women living on the streets or in poverty, since they do not have the resources to buy the aforementioned, which brings risks to their health and exposes the problems within public health.
Among the most vulnerable groups are girls and adolescents who live in marginalized areas of the country, who, in addition to suffering from health problems, these situations could have effects on their school and personal performance.
Likewise, the Undersecretary of Finance, Gabriel Yorio, pointed out that 43 percent of students stop attending school during the menstrual period because they do not have the resources to buy towels or other items, according to UNICEF figures.
“This problem has consequences such as temporary or permanent school leaving, health problems and loss of self-esteem. The education of adolescents is important because it allows them to have better opportunities in their adult life and helps social equity, ”added Yorio.
Previously, in October 2020, the Chamber of Deputies rejected the proposal for a zero rate for menstrual hygiene products called “Law of dignified menstruation”, which had a great boost in social networks under the hashtag #MensesDignifiedMexico.
The value of menstrual management products
An average woman uses 15 towels sanitary per month, spending approximately in each period more than 100 pesos; which represents an investment of more than 1,200 pesos per year just for that element, but they must use more. Feminine hygiene products they are a necessity in which millions of pesos are invested every month.
On average, a woman menstruates 2,535 days of her life, equivalent to seven consecutive years. The above considering that, according to data from the World Health Organization, the average age at which you menstruate is between 15 and 49 years of age.
In fact, the global beauty and personal care market is one of the sectors that is expected to grow exponentially, according to agency figures. Euromonitor, will maintain a sustained growth rate of 5 percent, until 2020.
In 2020, when the Law was introduced #MensesDignified Mexico, It was pointed out that if this measure were approved, it would imply that the Ministry of Finance stops collecting 3.4 billion pesos annually, according to information that the Treasury transmitted to the deputies.
Saba, Kotex and other brands dominate the segment, they would be involved in a historic change in the country, but it remains to be seen if the project becomes a reality.