The AAP government in Delhi has reduced the tax on sanitary napkins from 12.5 % to 5%.
Delhi Deputy Chief Minister and Finance Minister Manish Sisodia made the announcement in the budget for 2017-18 on Wednesday, which was also the International Women's Day.
Sanitary napkins costing Rs 20 have been made tax free, whereas the VAT on those priced above is 5%, PTI reported.
"Sanitary napkins up to Rs 20 will be tax free. In case of their cost being above Rs 20, the government proposes to reduce the tax rate from 12.5% to just 5% keeping in view the concern about hygiene of women," Sisodia said in the Delhi Assembly.
The Congress on Wednesday slammed the Modi government for what the party said was failure to fulfil its promises on reservation for women in Parliament and their safety and security in the country.
Congress Vice President Rahul Gandhi said he had signed a petition to support the demand that there should be no levy of tax on sanitary napkins, which are proposed to be taxed at 14% under the Goods and Services Tax system.
Congress MP Sushmita Dev had earlier written to Union Finance Minister Arun Jaitley for exemption of sanitary napkins from taxes.
Congress spokesperson Priyanka Chaturvedi said, "After the implementation of the GST, this essential commodity (sanitary napkins) is expected to be taxed at 14%.â€ť
"We fully support this cause and believe that removal of this tax and making sanitary napkins tax-free will help in overcoming a physical obstacle that women face during their menstrual cycle," she added.
With IANS inputs