China has begun 2026 by implementing a 13% tax on condoms, birth control pills, and other contraceptive products, ending more than 30 years of tax exemptions for these items.
The decision is part of the government’s strategy to address the ongoing decline in birth rates, as the country’s population has decreased for the third consecutive year. Under the new policy, contraceptives are now subject to value-added tax (VAT) at the same rate as other consumer goods.
This move comes alongside other pro-natalist measures, including childcare subsidies, tax benefits, and programs encouraging marriage and family formation. However, the tax has sparked debate among experts and on social media, with critics warning that higher prices could limit access to contraceptives and potentially create unintended public health consequences.
Why has China decided to tax these products now?
Because amid a growing demographic crisis and a rapidly aging population, authorities are seeking new ways to encourage couples to have children in a country where birth rates remain historically low.
