The Political Economy Of Gender Equity In Tax Reforms In Ghana: An Assessment Of The Tampon Tax

Abstract

Gender equality and taxation have become topical issues in the development policy debate on public finance, human rights, and government’s obligations to its citizens. Studies have shown that ideas about gender roles influence how economic policies and tax systems are organized. However, tax systems rarely respond to these gender biases, despite several reforms of development and pro-poor policies implemented by the government. The failure of policies to address biases in the tax system is often attributed to a ‘lack of political will’, but the underlying reasons for the poor implementation of reforms are rarely examined. Against this backdrop, the study adopted the Department for International Development’s (DfID) Drivers of Change (DoC) model to examine the underlying constraints against reforms in tampon tax in Ghana and the opportunities and incentives available. The study employed a qualitative design methodology. Using semi-structured interviews and purposive sampling, respondents were selected from the Ministry of Finance (MoF), Ministry of Gender, Children and Social Protection, Ghana Revenue Authority (GRA), civil society groups, non-governmental organizations, media, academia, tax and gender experts, and tampon tax activists. The study found that a combination of socio-economic and political factors sustains the relevance of the tampon tax and makes it difficult to repeal. Revenue-mobilizing ministries and agencies, such as the MoF and GRA, prioritize the revenue benefit and the transaction costs involved in the repeal of the tampon tax, and the government finds it convenient to maintain the tampon tax because its indirect nature does not increase citizens’ demand for accountability. In addition, the government’s inability to implement gender-responsive budgeting limits policy initiatives necessary to address biases in the tax systems. Furthermore, the invisibility of menstruation constrains mobilization and discussions for the repeal of the tampon tax. The study found that research evidence and campaigns projecting the impact of poor menstrual health management on girls of school-going age have made the tampon tax more visible in the media and political discussions and elicited some responses from politicians. However, weak collaboration and coordination among gender activists and organisations, lack of sustained activism and limited consultations with key policymakers impair or undermine the efforts of activists to get the tampon tax repealed. To deal comprehensively with gender biases in tax policies in Ghana, the government must adopt a multi-sectoral approach that ensures that gender is mainstreamed in all activities of ministries, departments and agencies (MDAs) and review the categorization of menstrual hygiene products (MHPs) to make them tax-exempt. Additionally, the activism to address gender biases in tax systems must be targeted at the key policymakers and implementers. Furthermore, activists must deliberately identify and equip government champions to influence policy discussions and the decision-making process. Finally, education and activism on the tampon tax must go beyond statements, press releases and conversations on World Menstrual Hygiene Day to sustain the attention of policymakers and other stakeholders.