By Our Correspondent
China has removed long-standing tax exemptions on condoms and contraceptive pills, introducing a new levy as part of its broader effort to encourage higher birth rates amid a continuing population decline.
Starting January 1, 2026, condoms, birth control pills, and other contraceptive products are now subject to China’s standard 13% value-added tax (VAT). The exemption, which had been in place for more than three decades, was originally introduced in the early 1990s when the government was actively promoting contraception under its one-child policy.
The move reflects a dramatic shift in national priorities. China’s population has fallen for three consecutive years, raising concerns about a shrinking workforce, slower economic growth, and the growing burden of an aging society. Policymakers are under increasing pressure to reverse the trend after decades of strict population control policies reshaped family planning decisions.
Officials have framed the tax change as one element of a wider pro-birth strategy. Other measures include tax breaks for childcare services, direct financial subsidies for families with children, extended parental leave in some regions, and public campaigns encouraging marriage and childbearing, particularly among young adults.
However, the decision has sparked criticism and debate. Many experts and members of the public argue that taxing contraceptives is unlikely to meaningfully influence decisions about having children. Critics say the main barriers to higher birth rates remain the high cost of housing, education, and childcare, along with job insecurity and changing social attitudes toward marriage.
Public health advocates have also raised concerns that higher prices for condoms and birth control could reduce access to contraception, potentially leading to unintended pregnancies or increased health risks, without addressing the deeper economic and social causes of China’s demographic decline.
As China struggles to reshape its population future, the new contraceptive tax has become a symbol of the government’s evolving — and controversial — approach to reversing one of the country’s most pressing long-term challenges.
