Budget FY22: VAT exemption on sanitary napkin production proposed

Finance Minister AHM Mustafa Kamal has proposed a VAT exemption at local manufacturing stage on the production of sanitary napkin to ensure health protection of women.

The minister made the proposal while placing the budget for 2021-2022 fiscal year in the parliament on Thursday.

"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 said. 

While importing raw materials for producing sanitary napkins, the manufacturers said they need to pay different types of taxes — customs duty, regulatory duty, supplementary duty, advance income tax, and value added tax.

The price of the product thus remains beyond the purchasing power of women from the lower-income groups, they added.