ISLAMABAD – Budget 2026–27 brings sigh of relief for millions as government abolished 18% sales tax on key health and hygiene products, including sanitary items and contraceptives.
Under the new tax policy, tampons and sanitary pads, previously subject to 18% sales taxm will now be fully exempt, reducing the cost of menstrual hygiene products for women across the South Asian nation.
The government has also withdrawn 18% sales tax on condoms and contraceptive medicines, extending the relief to essential reproductive health products for both men and women.
Officials said the decision has been taken after considering public health needs, basic necessities of citizens, and the broader objective of providing economic relief to the public.
The move is being seen as part of the government’s wider efforts to ease the financial burden on households while improving access to essential health-related goods.
It will ease financial burden on households and improving access to basic necessities, this policy addresses critical public health gaps by tackling “period poverty”, which forces many low-income women to rely on unsafe, unhygienic alternatives, and facilitating more accessible family planning to help stabilize demographic growth.
However, the true success of this measure for ordinary citizens hinges heavily on strict regulatory enforcement, as local price reductions could be undermined if manufacturers absorb the tax break to offset rising import costs or if retailers fail to pass the savings down to the consumer’s maximum retail price (MRP).
Budget 2026–27: Relief for Businesses as Super Tax Slabs axed
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