China’s contraception tax
China has implemented a 13% value-added tax (VAT) on contraceptives, including condoms, birth control pills, and related devices, effective January 1, 2026. This policy ends a longstanding exemption from the 1990s era of the one-child policy, when birth control was heavily promoted.
The tax change forms part of a revised VAT law approved in late 2024, aimed at addressing China’s declining birth rates amid an aging population and labor shortages. It reverses prior subsidies for contraception to now discourage its use indirectly through higher costs.
Simultaneously, VAT exemptions now apply to childcare services (nurseries, kindergartens), elderly care, disability services, and marriage-related offerings to incentivize family formation. These steps complement other efforts like cash handouts, extended maternity leave, and guidelines reducing non-medically necessary abortions.
The move has sparked backlash on platforms like Weibo, with concerns over rising unplanned pregnancies, STD risks, and women’s health, alongside vows of abstinence from some users. Births dropped to 9.5 million in 2024, about one-third fewer than in 2019.
