Saturday, January 3, 2026 - The Chinese government has reportedly introduced a 13% sales tax on contraceptives from 1 January, while exempting childcare services, in a bid to address its declining birth rates.
According to BBC News, Official figures show China’s
population has shrunk for the third year in a row, with just 9.54 million
babies born in 2024, roughly half the number recorded a decade ago.
From January 1, contraceptives that were exempt from
value-added tax (VAT) for over three decades are now subject to a 13% levy. The
exemption dated back to 1994, when China was firmly enforcing its one-child
policy.
The revised structure, announced in late 2025, removes these
legacy concessions while extending VAT relief to childcare services, elderly
care, and marriage-related expenses.
Alongside tax changes, authorities also rolled out measures
including longer parental leave and cash handouts.
But the decision to tax contraceptives has sparked
widespread debate – and ridicule online.
Daniel Luo, 36, who has one child and has no plans to have
more, doesn’t believe raising tax on contraceptives will lead to more babies.
‘It’s like when subway fares increase. When they go up by a
yuan or two, people who take the subway don’t change their habits. You still
have to take the subway, right?’ the 36-year-old, who lives in the eastern
province of Henan, told the BBC.
Others, meanwhile, worry the tax could have unintended
consequences.
Rosy Zhao, who lives in the central city of Xi’an, warned
that making contraception more expensive could push students or people
struggling financially to take risks.
She said this would be ‘the policy’s most dangerous
potential outcome’.
Some experts question whether boosting birth rates is the
real reason behind the tax introduction.
Demographer Yi Fuxian suggests the government is instead
looking to raise revenue as it grapples with rising debt and a property
downturn.
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