Tax expenditures consisting of exceptions, exemptions and deductions are not informality caused by the government itself. These practices, which create an ordinary deviation from the standard tax system, have the feature of being for socio-economic purposes determined by the government. The existence of socio-economic purposes is the ground of legitimacy of tax expenditures. But on the other hand, it is clear that the deviations that occur create financial privileges. Some authors describe these privileges caused by tax expenditures as financial discrimination, ignoring the socio-economic goals that are desired to be achieved. Privilege and discrimination are close to each other, but in terms of affirmation, the first is positive and the second is negative. For this reason, it should be discussed theoretically whether deviations in the tax system are privileges or discriminations. This discussion is important in terms of eliminating existing prejudices and intellectual confusion and contributing to the literature. In our opinion, tax expenditures are not discriminatory, they are privileged practices. However, there are also practices that create discrimination in tax systems, including those in Turkey.

Discrimination with a negative image is mainly about human rights. The first examples of discrimination that come to mind are gender and racial discrimination. There are also religious, political, ethnic, sectarian, language-based, wealth-level and class-based discriminations. Political rights and freedoms prohibit all kinds of discrimination and impose responsibilities on governments to ensure that social relations are lived in accordance with the principle of equality. When the literature on discrimination is examined, it is seen that a dual title is opened as direct discrimination and indirect discrimination. Accordingly, the form of direct discrimination is an expression of the understanding of equality and means “making a difference between persons in the same or similar position”. There are no such discriminatory practices in the Turkish tax system. Tax expenditures integrated into the system for socio-economic purposes are not discrimination, they are practices that create privilege. These privileges are necessary and important. Because tax expenditures are focused on either eliminating inequality of opportunity and regulating income distribution or creating economic incentives. Indirect discrimination, which is another form of discrimination, is accepted as “legal regulations, practices and measures that are equally valid and seemingly neutral, but that have a different or more negative impact on some individuals and groups than on others”. There are such discriminatory practices in the Turkish tax system, especially in the field of indirect taxes. The ways and methods followed in the taxation of menstrual products, which are the subject of this study, are one of the clear proofs of such discrimination. The aim is to draw attention to this discrimination and to discuss the necessity of eliminating it by revealing the ways and methods.

The demand for menstrual products used only by women, especially sanitary pads and tampons, is not optional but essential. Women's access to these products should be included in the basic need category and the ongoing indirect discrimination in terms of taxation should be ended. In recent years, some activists and non-governmental organizations have objected to the discriminatory taxation of these products, whose demand is inelastic, by using the rhetoric of buffer tax, and a rather young literature has emerged in the academy. The aim of this study is to contribute to this literature.

In terms of taxation, governments' attitude towards menstrual products can take five different ways. These; (i) standard rate taxation, (ii) reduced rate taxation, (iii) zero rate taxation, (iv) exemption and (v) public supply. Turkey is among the countries in the first group and this attitude of the government is evidence of indirect discrimination against women. Accordingly, it is of particular importance to address and reveal the practices in other countries. The thesis of this study is that menstrual products are merit goods. Therefore, governments need to make these products available to women free of charge. The possibility of this is an important indicator of modernity. While forgone tax revenue may be worrisome in the short term, the long-term gains that can be made by doing so are much more.

Turkey has serious advantages in terms of producing cotton, which is the basic input required for menstrual products. Even only Söke plain and Söke farmers are at a sufficient level in terms of features, equipment and knowledge required for production. Pads and tampons are standard products that have a certain production technique and have completed the product development. The production of these products through a state-owned enterprise to be established has strategic importance in terms of regional development, especially employment. Providing access to manufactured menstrual products to women across the country is a government achievement in itself. Making public regulations, establishing logistics networks and delivering these products, especially to rural areas, are activities that provide economic contributions. In addition, it is a separate achievement that even the lost labor of women who cannot reach these products due to financial difficulties are brought back to the economy and social life in this way.

The image of a government that produces menstrual products through state-owned enterprises, makes them available to women free of charge throughout the country, and exports these products to poor countries free of charge, has a unique value in terms of country's prestige. When Turkey becomes a country that does this, it will be a lesson to other governments. Turkey has been a country that has taught similar lessons in the past. For example, women in Turkey gained the right to vote and be elected in 1934, even before many developed countries. It is possible that a similar development, which is extremely important for the image of the country, will be repeated by providing women with free access to menstrual products and be a model for other countries. With this aspect, the study intends to be a pioneer in academic studies and projects to be carried out.

Keywords: Tax Expenditures, Fiscal Discrimination, Menstrual Products, Tampon Tax, Merit Goods