China is set to start imposing a 13% value-added tax on condoms and other contraceptives, ending a decades-long exemption.
The tax will take effect January 1, 2026, marking the first time these products will be taxed since the 1990s.
The government says the measure is part of a broader pro-natalist policy to address the country’s declining birth rate.
Despite allowing up to three children per family, birth rates have continued to fall, raising concerns about population shrinkage and an ageing population.
Alongside the tax change, officials are introducing incentives to encourage childbirth.
These include cash allowances for children, extended maternity and paternity leave, tax breaks for childcare services, and a promise that all out-of-pocket childbirth expenses will be covered starting in 2026.
The announcement has drawn widespread public attention, with many questioning the logic of taxing contraceptives to boost birth rates.
READ ALSO: China’s Exports Fall for First Time in Eight Months as U.S. Demand Collapses
Experts warn that higher costs could reduce access to contraception, particularly among lower-income groups, and may increase the risk of unplanned pregnancies and health complications.
Analysts note that while the tax may signal the government’s commitment to encouraging families to have more children, broader economic pressures and social factors are likely to remain the dominant influence on family planning decisions.
China’s population decline continues to be a major concern for policymakers, and this measure is one of several strategies aimed at reversing the trend.