US EditionPublished • loading... • Updated
China taxes condoms, contraceptive drugs in bid to spur birth rate
China replaces decades-long contraceptive VAT exemption with a 13% tax, shifting tax breaks to childcare and elderly care to counteract a declining birth rate and ageing population.
- On January 1, 2026, China imposed a 13% value-added tax on condoms, birth control pills and contraceptive devices, ending the VAT exemption on contraceptives since the early 1990s.
- Amid demographic alarm, Beijing says the tax and reforms aim to reverse declining birth rates, with just 1.4 billion people and a fertility rate of 1.02 last year.
- Alongside the tax change, Beijing introduced VAT exemptions for childcare services, marriage-related services and elderly care, plus longer parental leave, cash handouts, the 'Free Birth' strategy, and expanded medical coverage for delivery and prenatal care.
- Public reaction ranged from ridicule to concern, with critics warning `Higher prices may reduce access to contraceptives among economically disadvantaged populations, potentially leading to increases in unintended pregnancies and sexually transmitted infections`, said Qian Cai, on December 18, and local officials reportedly called women about menstrual cycles.
- Longer term, Beijing is also warned by Oxford Economics that potential output growth could fall below 4 percent in the 2030s, prompting automation plans, while experts remain skeptical about reversing low fertility given structural barriers, according to the YuWa Population Research Institute.
Insights by Ground AI
37 Articles
37 Articles
In China, the exemption for contraceptive pills and condoms that had existed for the past thirty years has been abolished. Learn why the Xi Jinping government took this step.
Why Is China Taxing Condoms, Birth Control Pills Now? Policy Shift Explained
China has begun imposing a 13 percentsales tax on contraceptives such as condoms, birth control pills, and devices from January 1, 2026, while exempting childcare services from value-added tax (VAT).
·New Delhi, India
Read Full Article
As a result of the one-child policy in force until 2015, the population has shrunk for the third year in a row
·Vienna, Austria
Read Full Article
A new law covers all "conceptive drugs and products" as well as pregnancy tests. Specialists are alert to the risk of unplanned pregnancy and sexually transmitted diseases.
·Portugal
Read Full Article
Coverage Details
Total News Sources37
Leaning Left6Leaning Right6Center6Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
Factuality
To view factuality data please Upgrade to Premium
