China has introduced a 13% value-added tax (VAT) on condoms and other contraceptives, including birth control pills , effective January 1, 2026, ending a tax exemption that had lasted for about three decades. The move is part of a broader policy push to encourage higher birth rates amid a long-term demographic decline.
The VAT change comes as the country marked roughly 10 years since it relaxed its strict One-Child Policy and shifted toward encouraging families to have more children. Despite incentives like expanded parental leave and child subsidies, birth rates in China have continued to fall, raising concerns about an aging population and shrinking workforce.
Government officials and tax authorities view the pricing change as one of several levers to alter family planning behaviour, alongside other natalist measures. However, critics say increasing the cost of contraceptives is largely symbolic and unlikely to have a major impact on family-building decisions. Some commentators also warn that making birth control more expensive could have public health implications, including reduced access for young and lower-income people and potential increases in unintended pregnancy or sexually transmitted infections.
China’s demographic challenge mirrors broader global trends in declining fertility, but the decision to tax contraceptives highlights the growing urgency within Beijing to reverse decades of population slowdown.
