Supreme Court Orders Tax Exemption on Sanitary Pads After Four-Year Legal Battle

In a landmark judgment, Nepal’s Supreme Court directed the government to remove the 18% tax on sanitary pads comprising 5% customs duty and 13% VAT recognizing them as essential health products rather than luxury items.

The decision followed a writ petition filed on August 10, 2021, by law students Shreena Nepal and Abhyuday Bhetwal, who argued that the tax violated fundamental rights guaranteed under Articles 16 (Right to Life), 18 (Right to Equality), and 38 (Rights of Women) of Nepal’s 2015 Constitution.

The court held that menstrual hygiene products qualify for VAT exemption under Section 5(3) of the VAT Act, 1996, and directed the government to ensure affordable access to such products.