China is introducing a 13% tax on contraceptives, including condoms, to stimulate birth rates amid a three-year decline. New measures also include tax breaks for parents on kindergarten and nursery services. This is reported by DW, according to UNN.
Details
It is noted that for the first time in 30 years, the Chinese authorities are introducing a value-added tax on contraceptives, including condoms. This step is presented as an attempt to counteract the declining birth rate, which could slow down economic growth.
Under the recently revised Value Added Tax Law, consumers will pay a 13% levy on goods that have been exempt from VAT since 1993. At that time, China pursued a strict "one-child policy" and promoted birth control.
The current policy review also provides for new forms of incentives for prospective parents - in particular, they will be exempt from tax on childcare services, i.e., nurseries and kindergartens. The changes will come into force in January
According to statistics, China's population has been declining for the third year in a row. In 2024, only 9.54 million births were registered - just over half of the 18.8 million ten years ago, when the "one-child policy" was abolished. As of January 1, 2025, China's population was about 1.408 billion people.
Recall
The Chinese real estate market is experiencing a deep crisis, exacerbated by population decline and slowing urbanization. According to Goldman Sachs estimates, demand for new housing in China's urban areas will fall to a quarter of the 2017 peak.