Gender Pricing and Tax Policy in Kazakhstan: Does a “Pink Tax” Exist?

Women often pay more for everyday goods, from hygiene products to personal care services. In public discourse in Kazakhstan, this phenomenon is often referred to as the “pink tax.” But does such a tax exist, or are these differences the result of market pricing strategies? Is a “Pink Tax” Recognized Under Kazakhstan’s Tax Code? If understood literally as a separate levy established in the Tax Code, the so-called “pink tax” does not exist in Kazakhstan. The country’s tax system includes corporate and individual income taxes, value-added tax (VAT), excise duties, social tax, property taxes, and other mandatory payments. There is no gender-based category. In Kazakhstan, the term is generally used to describe a potential “gender markup,” where products marketed to women are priced higher than comparable versions aimed at men, even when their features are largely the same. These differences are most often observed in items such as razors, shower gels, and other personal care products, where variation may be limited to packaging or branding. However, Kazakhstan lacks large-scale, representative studies on the issue. Most claims are based on retail observations and isolated price comparisons rather than comprehensive market research. How Tax Policy Affects Essential Hygiene Products: VAT and the “Tampon Tax” Public debate increasingly uses the term “tampon tax” to describe situations where menstrual hygiene products are subject to the standard VAT rate rather than a reduced rate applied to essential goods. Starting January 1, 2026, Kazakhstan’s base VAT rate increased to 16%. Reduced VAT rates of 5% (from 2026) and 10% (from 2027), apply only to goods and services, including specific medicines and medical devices that meet established criteria. These benefits do not apply broadly to all health-related goods, only to items included in officially approved lists. If sanitary pads, tampons, and other menstrual hygiene products are not included in the approved lists, they are subject to the standard VAT rate, like most other consumer goods. The law does not treat “women’s” products as a separate taxable category. As a result, Kazakhstan does not levy a distinct “pink tax” but applies uniform VAT rules. The broader policy debate centers on whether menstrual products should be classified as essential goods for tax purposes. The social dimension is significant. According to the World Bank and UNFPA, menstrual poverty refers to limited access to hygiene products and related services such as water, sanitation, healthcare, and education. A survey conducted in Kazakhstan by Umai Cup and SOAS (2,116 participants) found that 25% of respondents had no access to hygiene products during their first menstruation, 66% used improvised materials, and 10% missed school due to an inability to purchase sanitary pads. When a recurring monthly product is taxed at the full VAT rate and rises in price along with inflation, the financial burden falls disproportionately on low-income women. For students, single mothers, and mothers of large families, this may translate into restricted access to basic hygiene. Why the “Pink Tax” Has a Greater Impact at Lower Income Levels Even without normative judgments, the economic...

Kazakh MPs Propose Differentiated Taxation for Medicines and Healthcare

Kazakh lawmakers are pushing for a differentiated tax policy on medicines and healthcare services to maintain their affordability amid upcoming tax reforms. Askhat Aimagambetov, a deputy of the Mazhilis (Kazakhstan’s lower house of parliament), has proposed exempting certain essential medicines from value-added tax (VAT) and reducing the tax burden on medical institutions. Proposed VAT Adjustments Kazakhstan is currently debating a new Tax Code that would increase the VAT rate from 12% to 16%, while introducing zero and reduced rates for specific industries. Aimagambetov, writing on social media, noted that a group of Mazhilis deputies had repeatedly advocated for differentiated taxation of medicines and medical services even before discussions on the VAT hike began. He stressed that applying the full 16% VAT rate to all medical services and pharmaceuticals would lead to a sharp rise in costs and reduce access to healthcare for the population. Tax Exemptions for Essential Medicines To mitigate this impact, lawmakers propose VAT exemptions for drugs treating socially significant diseases such as: Cancer Rare diseases Palliative care Diabetes Autoimmune diseases “The specific list is still under discussion and will be expanded,” Aimagambetov stated. “This measure will prevent a sharp increase in drug prices for those who need them most, socially vulnerable groups.” For other medicines, a reduced VAT rate of 10% is under consideration. Impact on Medical Services Currently, medical services in Kazakhstan are not subject to VAT. However, under the new Tax Code, the government proposes introducing a 10% VAT rate. Aimagambetov and his colleagues initially suggested reducing this to 5%, but discussions are now focused on exempting certain socially significant medical services from VAT entirely. These include: Oncology treatments Palliative care (hospices) Stroke treatment Potentially obstetrics and other critical medical services For other medical services, a 10% VAT rate may be introduced. Changes to Corporate Tax in Healthcare In addition to VAT adjustments, the government plans to raise the corporate income tax for medical institutions. Currently, this sector benefits from a zero-tax rate, but under the proposed reforms, a 10% corporate tax would be applied. Consultations with Businesses Ongoing As previously reported by The Times of Central Asia, the government plans to finalize the list of industries eligible for the 10% VAT rate following consultations with the business community.