China Imposes 13% VAT on Condoms and Contraceptive Pills to Boost Birth Rate Amid Population Decline
China has ended a three-decade exemption on contraceptives, introducing a 13% value-added tax (VAT) on condoms and contraceptive pills starting January 1, 2026. The move is part of Beijing’s efforts to reverse a sustained decline in the country’s birth rate, following three consecutive years of population decrease.
The government has implemented multiple “fertility-friendly” initiatives in recent years, including childcare subsidies and programs promoting marriage and family life, as authorities confront the demographic challenges created by the legacy of the one-child policy, rapid urbanization, and economic pressures. Rising childcare costs, job insecurity, and economic uncertainty have also contributed to young people delaying marriage and family formation.
Chinese authorities argue that the VAT policy is aimed at encouraging childbearing, even as the country grapples with an aging population and shrinking workforce, highlighting the tension between economic policy and social planning in addressing demographic decline.
China has ended a three-decade exemption on contraceptives, introducing a 13% value-added tax (VAT) on condoms and contraceptive pills starting January 1, 2026. The move is part of Beijing’s efforts to reverse a sustained decline in the country’s birth rate, following three consecutive years of population decrease.
The government has implemented multiple “fertility-friendly” initiatives in recent years, including childcare subsidies and programs promoting marriage and family life, as authorities confront the demographic challenges created by the legacy of the one-child policy, rapid urbanization, and economic pressures. Rising childcare costs, job insecurity, and economic uncertainty have also contributed to young people delaying marriage and family formation.
Chinese authorities argue that the VAT policy is aimed at encouraging childbearing, even as the country grapples with an aging population and shrinking workforce, highlighting the tension between economic policy and social planning in addressing demographic decline.
China Imposes 13% VAT on Condoms and Contraceptive Pills to Boost Birth Rate Amid Population Decline
China has ended a three-decade exemption on contraceptives, introducing a 13% value-added tax (VAT) on condoms and contraceptive pills starting January 1, 2026. The move is part of Beijing’s efforts to reverse a sustained decline in the country’s birth rate, following three consecutive years of population decrease.
The government has implemented multiple “fertility-friendly” initiatives in recent years, including childcare subsidies and programs promoting marriage and family life, as authorities confront the demographic challenges created by the legacy of the one-child policy, rapid urbanization, and economic pressures. Rising childcare costs, job insecurity, and economic uncertainty have also contributed to young people delaying marriage and family formation.
Chinese authorities argue that the VAT policy is aimed at encouraging childbearing, even as the country grapples with an aging population and shrinking workforce, highlighting the tension between economic policy and social planning in addressing demographic decline.
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