In a move aimed at boosting the national birth rate, China will begin imposing a 13% value-added tax (VAT) on contraceptives, including condoms and contraceptive drugs, starting January 1, 2026. This marks the first time in more than three decades that these products will no longer be tax-exempt.
The policy comes amid a sharp decline in the country’s birth rate. In 2024, only 9.5 million babies were born, roughly one-third fewer than the 14.7 million births recorded in 2019, according to the National Bureau of Statistics. With deaths now outpacing births, India overtook China as the world’s most populous country in 2023.
The tax has drawn criticism and humor on Chinese social media, with some joking that raising a child is far more expensive than buying taxed condoms. Hu Lingling, a mother of five-year-old, called the policy “ruthless” and said she plans to practice abstinence rather than have more children.
Experts warn the tax could increase unplanned pregnancies and sexually transmitted infections, especially among low-income populations. Qian Cai, Director of the University of Virginia’s Demographics Research Group, said limited access to affordable contraception may lead to higher healthcare costs but is unlikely to significantly change reproductive decisions for couples who do not want more children.
China’s population policies have shifted dramatically over the decades. From 1980 to 2015, couples were restricted to one child, enforced through fines and, in some cases, forced abortions. The limit was later increased to two children in 2015 and three children in 2021 in response to a declining population.
Previously, contraception was widely encouraged and often provided for free. Now, the tax aims to reduce contraceptive use as part of government efforts to encourage larger families. Yi Fuxian, senior scientist at the University of Wisconsin-Madison, described the move as “logical,” reflecting China’s transition from population control to population growth promotion
