Pakistan plans to abolish “period tax”, in a victory for young campaigners who had taken the government to court over the charges.

Finance minister Muhammad Aurangzeb announced that sanitary towels and related items were “daily necessities that are indispensable for women’s health, dignity and full participation in social activities”, and said he intended to remove the sales tax.

Commercial period products are used only by a minority of women in Pakistan because of their cost, according to research from Unicef. Most use cloth or homemade alternatives that can be unsafe and raise the risk of infection.

Two lawyers, 25-year-old Mahnoor Omer and 29-year-old Ahsan Jehangir Khan, brought a court case last year in a bid to get sanitary products zero-rated, so that they would not be subject to taxes of any kind. They said the charges amounted to a “pink tax” on women.

Their campaign was hugely successful on social media and a supportive petition attracted thousands of signatures.

Locally made period products incur the 18% sales tax in Pakistan, and imported products are subject to an additional 25% customs tax.

UN Women said the decision to abolish the sales tax was a welcome step that would help women stay in work and girls stay in school. It said: “Menstrual health is a matter of health, dignity and equality – not a luxury.”

Omer welcomed the announcement but said the fight was “definitely not over”, and that they would continue to push for the removal of all additional charges on period products.

Bushra Mahnoor, executive director of Mahwari Justice, a Pakistani period rights organisation, said the decision was “just one step towards combating period poverty” in the country.

She told CNN its most valuable effect was probably destigmatising menstruation, but that safe sanitary products remained unaffordable for the most vulnerable women.

She said: “Menstrual justice also means access to clean water, sanitation facilities, accurate menstrual education and a society free from period stigma.

“This moment is significant, but our work is far from over.”

The government will also no longer impose an 18% sales tax on contraceptives, Aurangzeb said.

Abolishing the tax on contraceptives was necessary in the face of “alarming” population growth, he added, saying: “Pakistan is the fifth-largest country in the world in terms of population … Family planning is a top priority of the government.”