China to Tax Contraceptives from January in Bid to Boost Birth Rates
Beijing imposes 13% sales tax on condoms and birth control as part of wider pro-family policy changes
From 1 January 2026, Chinese consumers will face a 13% sales tax on contraceptives, including condoms, birth control pills, and intrauterine devices, while childcare services will remain exempt. The move comes as the world’s second-largest economy struggles with an ageing population and historically low birth rates.
The overhaul, announced late last year, is part of China’s first major revamp of its value-added tax (VAT) system since 1994, when the country was still enforcing its decades-long one-child policy. While the new system removes many exemptions, it also continues to exempt marriage-related services and elderly care, reflecting a broader government effort to encourage couples to marry and have children.
Beijing has coupled the tax reforms with longer parental leave, cash handouts for families, and other incentives aimed at reversing demographic decline. Official figures indicate that China’s population has fallen for three consecutive years, with just 9.54 million babies born in 2024—roughly half the number recorded a decade ago, shortly after the government began easing restrictions on family size.
However, the decision to tax contraceptives has sparked concern among public health experts and the general public, who warn it could increase unwanted pregnancies and HIV risk, while others have expressed ridicule online.
One social media user quipped: “I’ll buy a lifetime’s worth of condoms now.” Another highlighted the cost contrast, writing: “People can tell the difference between the price of a condom and that of raising a child.”
Economic factors are also weighing on family planning decisions. A 2024 report by the YuWa Population Research Institute in Beijing identified China as one of the most expensive countries to raise a child. Costs are driven up by school fees, competitive academics, and the difficulties women face balancing work and parenting, the study found.
The slowing economy and ongoing property crisis have left many young families feeling uncertain about their financial future. For some, the tax increase may be negligible. “I have one child, and I don’t want any more,” said 36-year-old Daniel Luo from Henan. “A box of condoms might cost an extra five to 20 yuan. Over a year, that’s just a few hundred yuan—completely affordable.”
But for others, cost is a genuine concern. Rosy Zhao, a resident of Xi’an, warned that making contraception more expensive could lead financially constrained individuals, including students, to “take a risk”, which she described as the policy’s “most dangerous potential outcome.”
Observers are divided over whether the tax hike will influence birth rates. Demographer Yi Fuxian from the University of Wisconsin-Madison said the measure is unlikely to boost fertility. “China is keen to collect taxes wherever it can,” he noted, pointing out that VAT revenue, which reached nearly $1 trillion (£742bn) last year, represents close to 40% of the country’s total tax collection.
Experts argue the tax is largely symbolic. Henrietta Levin, senior fellow at the Center for Strategic and International Studies, said it reflects Beijing’s attempt to address “strikingly low” fertility rates. However, she noted that implementation challenges, especially for indebted provincial governments, could undermine the government’s incentives.
China’s pro-birth policies have faced criticism for being overly intrusive. Media reports have highlighted cases in which women were contacted by local officials about their menstrual cycles and reproductive plans. The Yunnan provincial health bureau defended the practice as necessary to identify expectant mothers, but critics say such measures risk alienating the public. “The party can’t help but insert itself into every decision it cares about, so it ends up being its own worst enemy,” Ms Levin said.
Some experts suggest that the government’s male-dominated leadership fails to grasp broader social shifts affecting young people. Declining marriage rates, reduced dating, and the high cost of raising children are factors not easily addressed by financial incentives alone.
Mr Luo noted cultural changes: “Rising sales of sex toys show people are satisfying themselves because interacting with another person has become more of a burden. Being online is easier and more comforting.” He added: “Young people today deal with far more societal stress than 20 years ago. Sure, materially they’re better off, but expectations are higher. Everyone’s just exhausted.”
With China’s fertility crisis showing few signs of abating, experts warn that tax incentives alone may not be enough to reverse a demographic trend that is reshaping the country’s future.
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China to Tax Contraceptives from January in Bid to Boost Birth Rates