SUNTV Global Channel Report
China has begun imposing taxes on condoms and contraceptive pills as part of a broader push to boost birth rates, ending a policy exemption that had been in place for more than 30 years.
From January 1, 2026, contraceptive drugs and devices are now subject to a 13 percent value-added tax — the standard rate applied to most consumer goods — according to information obtained by Reuters. The move marks a significant shift in Beijing’s population strategy as the country grapples with a steadily shrinking population.
China’s population declined for the third consecutive year in 2024, raising alarm among policymakers and economists who warn the trend could pose serious long-term risks to the world’s second-largest economy, including labour shortages and slower growth.
In response, authorities have rolled out a series of “fertility-friendly” measures aimed at encouraging marriage and childbearing. These include exempting childcare subsidies from personal income tax, introducing annual childcare allowances, and promoting what officials describe as “positive marriage and family values.”
The government has also urged colleges and universities to provide “love education,” encouraging young people to embrace marriage, family life and parenthood. At the recent Central Economic Work Conference, China’s top leaders reiterated their commitment to promoting what they called “positive marriage and childbearing attitudes” in a bid to stabilise birth rates.
China’s demographic challenges are rooted in decades of declining fertility, shaped largely by the one-child policy enforced between 1980 and 2015, as well as rapid urbanisation. Today, high childcare and education costs, job insecurity, and a slowing economy continue to discourage many young Chinese from starting families.
Analysts say the new tax policy underscores how urgently Beijing is searching for solutions to halt — or at least slow — the country’s population decline.
Reported by SUNTV Global Channel
