Reported by: Ijeoma G | Edited by: Gabriel Osa
BEIJING — In a striking policy shift aimed at confronting one of the world’s most serious demographic challenges, the Chinese government has begun imposing a 13 percent value-added tax (VAT) on contraceptives, including condoms and birth-control pills, effective January 1, 2026. The move ends a decades-long tax exemption on these products and comes as China grapples with persistently falling birth rates and a shrinking population.
For more than 30 years, contraceptives were exempt from VAT under rules established during China’s strict one-child policy era as part of efforts to curb population growth. With that policy abandoned in 2016, Beijing has since reversed course and implemented a range of pro-natalist measures to encourage childbearing amid an accelerated population downturn. Under the revised system adopted at the start of 2026, condoms, contraceptive drugs and related devices are now taxed at the standard 13 percent VAT, aligning them with the majority of consumer goods in the country.
The tax change is part of a broader attempt to combat a deepening demographic crisis that has seen China’s population fall for three consecutive years, with official statistics showing the total number of births has declined significantly from nearly 14.7 million in 2019 to approximately 9.5 million in 2024. Analysts warn that sustained low fertility, coupled with a rapidly ageing population, threatens long-term economic growth, labor supply and the sustainability of social welfare systems.
Beijing’s strategy reflects a dramatic reversal from the policies of the late 20th century, when family planning was vigorously enforced through strict birth limits, penalties for excess children and widespread promotion of contraception. Today’s demographic concerns — including a shrinking workforce and rising dependency ratio — have prompted policymakers to experiment with incentives designed to make family formation more attractive.
In parallel with the contraceptive tax, the government has extended tax exemptions to childcare services, marriage-related services, elder care and disability care providers, in a bid to address factors that influence family planning decisions. Some localities have also introduced childcare subsidies, expanded maternity and paternity leave, and cultural campaigns encouraging positive attitudes toward marriage and childbearing.
Despite these efforts, the decision to tax contraceptives has drawn criticism from public health experts and some segments of the public. Critics argue that making contraception more expensive could have unintended consequences, such as reduced access to sexual health products and a potential rise in unintended pregnancies or sexually transmitted infections, especially among lower-income populations. They describe the tax as largely symbolic and caution that economic and social barriers — including high child-rearing costs, housing pressures and job insecurity — remain powerful deterrents to family expansion.
Demographers also caution that China’s population decline is a complex phenomenon driven by deeply rooted economic and social trends, and that adjusting the price of contraceptives is unlikely to fundamentally reverse fertility patterns without more comprehensive support for young families. Nevertheless, the new tax underscores the urgency with which Chinese authorities are responding to demographic shifts, highlighting the lengths to which policymakers are willing to go to try to stimulate higher birth rates.
With the country’s demographic trajectory continuing to evolve, Beijing appears poised to monitor the effects of its sweeping measures closely, even as debates persist over the balance between economic incentives, cultural attitudes and individual reproductive choices in shaping China’s future population landscape.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments