China has announced a significant change in its tax policy regarding contraceptives, with condoms and other contraceptive products set to be subject to a value-added tax (VAT) beginning on January 1, 2026. This move means that these products will no longer qualify as tax-exempt goods, and a standard VAT rate of 13% will apply. The decision has ignited discussions on social media, where many users have questioned the implications of this tax change in light of the country’s ongoing struggle with declining birth rates.
As officials in China attempt to encourage higher birth rates, the removal of the tax exemption for contraceptives has raised eyebrows. Some social media commenters expressed skepticism about the effectiveness of this policy change. One user sarcastically asked, “which expert” proposed this idea, highlighting concerns that increased costs for contraception could negatively impact couples’ private lives and relationships. Another user pointed to economic factors, suggesting that low incomes and limited vacation time are more significant contributors to the low birth rate than the availability of contraceptives.
China has been grappling with a declining birth rate for several years. In an effort to address this issue, the government began relaxing its long-standing one-child policy in the mid-2010s. The introduction of a two-child policy in 2016 was followed by a shift to a three-child policy in 2021, as authorities sought to counteract the effects of an ageing population. Despite these efforts, including various incentives such as tax breaks, extended parental leave, and local subsidies, the government has struggled to persuade couples to have more children.
Analysts identify multiple factors contributing to the country’s declining birth rate. Rising living costs, particularly housing expenses, along with intense educational pressures and job insecurity, are often cited as significant barriers preventing couples from expanding their families. These economic realities create a challenging environment for potential parents, who are increasingly hesitant to take on the financial responsibilities associated with raising children.
The introduction of VAT on contraceptives may further complicate the landscape for couples contemplating parenthood. As discussions around this new tax unfold, it remains to be seen how it will impact both individual decisions and broader demographic trends in China. The government’s commitment to reversing the current population decline continues to face formidable challenges, as many couples weigh the implications of rising costs against their personal circumstances and aspirations.
