China to tax condoms for first time in 3 decades to boost birth rates
(NewsNation) — China’s government is set to impose a value-added tax on contraceptives, including condoms, for the first time in three decades, as the country attempts to reverse falling birth rates.
Under the revised tax law, consumers will have to pay a 13% tax on contraceptive drugs and devices for the first time since 1993, as reported by Bloomberg. It will come into force on January 1, 2026.
China’s population, the world’s second largest, has declined for three consecutive years, with 9.54 million births in 2024, just half of the 18.8 million recorded a decade ago, when the country’s one-child policy was lifted.
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This change in tax policy comes as the Chinese government seeks to mitigate the economic downside of an aging and shrinking population. The revision also includes the removal of value-added tax on childcare services, elderly care institutions and marriage-related services to further promote family formation.
HIV is on the rise in China and critics of tax policy worry that raising the price of contraceptives will lead to riskier sexual practices and cause STD rates to skyrocket.
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