Q. With reference to the Pink Tax, consider the following statements:
1.It is not a real tax as it is not imposed by the government.
2.It is a pricing phenomenon wherein women pay more for buying a product exclusively made for them.
Which of the statements given above is/are correct?
Answer: C
Notes:
Explanation: Both are correct
Statement 1 is correct: Pink tax is neither a real tax, nor is it a government imposed fee.
Statement 2 is correct: It’s just a pricing phenomenon wherein women pay more for buying a product exclusively made for them or enjoying a service tailor-made for them. As there is no outright ban on pink tax, firms reap benefits by pocketing extra revenue generated out of selling the items, without contributing to government’s coffers.
Source: TH
