China imposes condom tax amid efforts to reverse declining birth rate
Chinese authorities have announced that condoms and other contraceptive products will be taxed for the first time in more than three decades as part of efforts to address the country’s falling birth rate. The government will end the long-standing tax exemption on contraceptives and impose a standard 13 percent value-added tax on these products starting January 1, 2026 under the newly revised Value-Added Tax Law. Condoms and contraceptives have been exempt from VAT since 1993, and this change marks a significant shift in policy amid mounting concerns about China’s shrinking population, low fertility levels, and rapidly aging society. The new tax is part of a broader set of population measures as Beijing tries to encourage couples to have more children. Official statistics show that China’s birth numbers have dropped sharply in recent years, with just under 10 million births recorded in 2024, far below levels seen in previous decades, while deaths now outpace births. Authorities have introduced a range of pro-natalist incentives to stimulate family growth, including expanded maternal and childcare subsidies, full reimbursement of out-of-pocket childbirth expenses, and exemptions on VAT for childcare, elder-care, and marriage-related services. These policies aim to reduce financial barriers to starting a family and to compensate for decades of population control under the former one-child policy that was in place from 1980 to 2015.
Despite the government’s intentions, the tax on condoms has sparked public debate and criticism both within China and internationally. Many commentators and social media users argue that raising the price of contraceptives is unlikely to meaningfully influence people’s decisions on having children because the overall cost of raising a child remains far higher than the cost of contraception. Public health experts have also warned that increasing prices for contraceptives could reduce access for economically disadvantaged groups and potentially lead to higher rates of unintended pregnancies and sexually transmitted infections. Some analysts say the policy will have only a symbolic effect and that deeper economic and social factors such as job insecurity, housing costs, and the high cost of childrearing are more significant barriers to increasing birth rates. Critics emphasize that addressing these root causes is more important than taxing preventive health products to influence personal reproductive choices.
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