China taxes contraceptives after a 30-year pause: Beijing launches new incentives to stem demographic decline
2 December 16:05
For the first time in three decades, China is planning to introduce a tax on condom purchases, a move the government sees as part of a broader strategy to counteract the rapidly falling birth rate. This was reported by Bloomberg, according to "Komersant Ukrainian".
What is known
For the first time since 1993, contraceptives will again be subject to a 13% value-added tax. They were exempted from VAT during the One Family, One Child policy, when the state, on the contrary, encouraged fewer births. Now Beijing is moving in the opposite direction, trying to correct the demographic imbalance.
What measures are proposed by the authorities
Along with condom taxation, the government plans to introduce incentives for future parents, including
- tax benefits for childcare services;
- tax exemption for institutions that take care of the elderly;
- new recommendations to reduce the number of abortions that are not “medically necessary”.
These changes will come into effect in January 2026.
Demographic context
China is facing a rapidly aging population and a declining birth rate. For the third year in a row, the country has recorded a population decline. In 2024, only 9.54 million children were born, less than half the level of a decade ago.
For Beijing, the demographic crisis is turning into one of the key long-term threats affecting the economy, labor market, and social systems.
The new package of decisions shows that the authorities are stepping up their efforts to reverse this trend, balancing incentives and regulatory restrictions.
