{"id":709802,"date":"2023-08-09T07:00:00","date_gmt":"2023-08-09T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=709802"},"modified":"2023-08-08T16:52:32","modified_gmt":"2023-08-08T14:52:32","slug":"the-hidden-tax-more-than-half-of-south-africa-is-paying","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/709802\/the-hidden-tax-more-than-half-of-south-africa-is-paying\/","title":{"rendered":"The hidden tax more than half of South Africa is paying"},"content":{"rendered":"\n

51.1% of South Africa’s population is paying a hidden tax – and it’s purely based on gender.<\/p>\n\n\n\n

According to Stats SA, approximately 48.9% (about 29.39 million) of the South African population is male, while 51.1% (about 30.75 million) is female \u2013 with the latter having to contend with a phenomenon known as the \u201cpink tax\u201d. <\/p>\n\n\n\n

While not an official levy, the pink tax is a markup on certain goods marketed to women, such as toiletries and grooming products. Men pay less for similar products marketed to them, said JustMoney<\/a>.<\/p>\n\n\n\n

Informal research conducted by the personal finance platform in July 2023 lends credence to the existence of a pink tax, revealing a price discrepancy between gender-targeted products from the same brand at the same retailer. <\/p>\n\n\n\n

The research showed disposable razors for women, for example, cost R84.99, while the male version was priced at R42.95. <\/p>\n\n\n\n

Even-tone day cream for women (50ml) cost R179.95, while even-tone cream (R75ml) for men was R68.95. Straight-leg jeans cost R400 a pair for women and R350 for men.<\/p>\n\n\n\n

Financial planner Sylvia Walker, author of Smartwoman: How to Gain Financial Independence and Create Wealth<\/em>, notes that this does not necessarily indicate intentional price inflation by retailers, adding that consumers have the power to choose more economical options and decide on grooming expenditures.<\/p>\n\n\n\n

There is also a far greater tax burden<\/a> on single-earner households \u2013 a further blow, as 41.7% of children live with single mothers versus 4.4% living with single fathers.<\/p>\n\n\n\n

It is unsurprising that the annual DebtBusters Money-Stress Tracker 2023 Survey released last month revealed that four out of five female respondents experience financial stress.<\/p>\n\n\n\n

Necessities versus luxuries<\/strong><\/p>\n\n\n\n

According to JustMoney, a crucial point of debate around the pink tax is whether certain items are considered luxuries or necessities. <\/p>\n\n\n\n

Despite the South African government’s initiative to zero-tax rate menstrual pads in 2018, VAT is still levied on tampons, menstrual cups, and other related products. These levies disproportionately affect lower-income consumers, especially those relying on reusable options like menstrual cups.<\/p>\n\n\n\n

Tips to take limit the amount of pink tax paid <\/strong><\/p>\n\n\n\n

To mitigate the impact of the pink tax and other financial challenges, women can consider the following strategies, as outlined by Shafeeka Anthony, Marketing Manager of JustMoney:<\/p>\n\n\n\n