In the pursuit of birth rate: China reinstated tax on contraceptives
Kyiv • UNN
China has abolished the tax exemption on contraceptives and birth control methods, introducing a 13% VAT. This is a step in response to the declining birth rate and the third consecutive year of population decline.
China has canceled tax exemptions on contraceptives and related products, continuing to adjust its demographic policy amid a persistent decline in birth rates and a shrinking population. Reuters reports this, according to UNN.
Details
It is noted that condoms and birth control pills are now subject to a 13% value-added tax, which is the standard rate for most consumer goods.
The move comes as Beijing tries to boost birth rates in the world's second-largest economy. China's population declined for the third consecutive year in 2024, and experts warn that the decline will continue
It is indicated that last year, Chinese authorities exempted childcare subsidies from personal income tax and introduced annual financial assistance for families with children. These measures were part of a package of steps implemented in 2024, including calls for educational institutions to promote "love education," forming a positive attitude towards marriage, family, and childbirth.
Context
China's birth rate has been declining for decades as a result of the "one-child policy," which China implemented from 1980 to 2015, and rapid urbanization.
Recall
China's National Health Commission announced that starting in 2026, it will cover all costs associated with childbirth, including prenatal examinations.
China concealed mass lead poisoning of over 200 children22.07.25, 12:10 • 3704 views