US EditionChina's condom conundrum: If you can't afford a taxed contraceptive, can you afford to raise a child?
China ends a 30-year VAT exemption on contraceptives, imposing a 13% tax amid concerns over rising HIV cases and high child-rearing costs, with just 9.54 million births in 2024.
- The revised VAT law takes effect in January, imposing a 13 per cent levy on contraceptive drugs and devices, including condoms, ending a VAT exemption from 1993.
- Official data show only 9.54 million babies were born in 2024, prompting Beijing to shift from limiting births to pro-natalist measures addressing a shrinking labour force and ageing population.
- Authorities paired the contraceptive tax with incentives like cash handouts, expanded maternity and paternity leave, and exemptions for nurseries, kindergartens, elder-care institutions, disability service providers, and marriage-related services.
- On social media, commentators questioned whether taxing condoms could worsen public health, as the Chinese Centre for Disease Control and Prevention reports HIV/AIDS cases rose from 0.37 to 8.41 per 100,000 between 2002 and 2021, with most linked to unprotected sex.
- He Yafu says removing the VAT exemption is largely symbolic and unlikely to shift fertility trends, while a YuWa study estimates raising a child to age 18 costs more than 538,000 yuan amid a slow economy and unstable job market.
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28 Articles
'Condom Tax' in China: Beijing Introduces 13% Tax on Contraceptive Drugs and Devices Including Condoms After 32 Years To Boost Birth Rates | 🌎 LatestLY
Under the revised value-added tax law, consumers in China will now have to pay 13 tax on contraceptive drugs and devices, including condoms, which had been exempted since 1993. Nearly 32 years ago, Beijing had enforced a strict one-child policy and actively promoted birth control in the country. The move is aimed at reversing plunging birth rates in China. 🌎 'Condom Tax' in China: Beijing Introduces 13% Tax on Contraceptive Drugs and Devices In…
Last year, only 9.54 million children were born in China – less than half the birth rate ten years ago.
After more than 30 years, China is ending its VAT exemption on condoms, as authorities worry about an aging population and labor shortages, and a new law aims to boost the birth rate. Contraceptives will be subject to a 13 percent sales tax from January, a sharp break with the previous direction, as China has supported birth restrictions as part of a strict family planning policy for decades. China's birth rate has been falling for decades, acce…
China Adds Tax to Condoms as It Works to Boost Birth Rates
China will impose a value-added tax on contraceptive drugs and devices — including condoms — for the first time in three decades, its latest bid to reverse plunging birth rates that threaten to further slow its economy.
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