HPP Law Challenged at Constitutional Court Over VAT on Sanitary Pads

JAKARTA, DDTCNews - An applicant named Bernita Matondang has filed a judicial review of Article 16B paragraph (1a) subparagraph j number 1 of the VAT Law, as amended by Law 7/2021, on the Harmonisation of Tax Regulations (Harmonisasi Peraturan Perpajakan/HPP in Indonesian).

In her application, the applicant requests that the Constitutional Court declare Article 16B paragraph (1a) subparagraph j number 1 of the VAT Law, as amended by the HPP Law, to contradict Article 28D paragraph (1) of the 1945 Constitution.

According to the applicant, the provision has not provided a normative guarantee that the determination of basic necessities that are urgently needed by the general public is carried out on the basis of objective, rational and proportionate criteria, including by taking into account menstrual hygiene needs.

"The absence of such a normative guarantee may result in essential needs relating to human biological functions not receiving equal consideration in the formulation of tax facility policy, thereby giving rise to issues of fair legal certainty as guaranteed under Article 28D paragraph (1) of the 1945 Constitution," the applicant explained in Application Number 406/PUU-XXIV/2026, as cited on Tuesday (3/11/2026).

The Elucidation of Article 16B paragraph (1a) subparagraph j number 1 of the VAT Law, as amended by the HPP Law, sets out basic necessities that are urgently needed by the general public, including rice, grains, corn, sago, soybeans, salt, meat, eggs, milk, fruits and vegetables.

Menstrual hygiene products, such as sanitary pads, are not explicitly mentioned in that list of basic necessities. According to the applicant, a constitutional issue arises because the determination of basic necessities exempt from VAT has not been based on objective, rational and consistent criteria aligned with the objective of protecting fundamental needs.

"Menstrual hygiene products, in particular, sanitary pads, are required to manage the unavoidable biological process of menstruation experienced by those who undergo it. This need arises periodically and relates to cleanliness, health and an individual's ability to carry out daily activities with dignity. Accordingly, these characteristics ought to be considered when the state determines the category of goods that receive tax facilities," the applicant wrote.

The applicant stated that she does not contest the granting of VAT facilities for various food products. Through this application, the applicant questions the criteria of essential needs used to grant VAT facilities, such that non-food needs directly relating to biological processes do not receive VAT facilities.

"This argument must be understood as a review of the rationality and certainty of the criteria, not a review seeking the court to directly determine all fiscal policy that falls within the authority of the legislature," the applicant wrote.

Based on the foregoing arguments, the applicant requests that the Constitutional Court declare Article 16B paragraph (1a) subparagraph j number 1 of the VAT Law, as amended by the HPP Law, to contradict the 1945 Constitution and to have no binding legal force to the extent that it is not interpreted as requiring that the determination of basic necessities urgently needed by the general public must objectively, rationally and proportionately take into account essential needs relating to human biological processes, including menstrual hygiene products.

The applicant also requests that the list of basic necessities in the Elucidation of Article 16B paragraph (1a) subparagraph j number 1 of the VAT Law, as amended by the HPP Law, not be interpreted as exhaustive, to allow for the inclusion of other goods possessing the characteristics of essential needs, including menstrual hygiene products.

The preliminary examination trial for this case will be held at the Constitutional Court on 10 November 2026. (rig)