14.12.2025 11:50
China has decided to impose a 13% VAT on contraceptive products that have been exempt from taxes for many years in order to increase the declining birth rates. The regulation, which will come into effect on January 1, 2026, has sparked public debate.
In China, condoms, birth control pills, and contraceptive devices will be subject to a value-added tax (VAT) of 13% starting from January 1, 2026. This will end a 32-year tax exemption that has been in place since 1993 for these products.
The decision was announced due to concerns about the long-standing stagnation of birth rates in the country, an aging population, and a shrinking workforce.
LOST THE TITLE OF "MOST POPULOUS COUNTRY" TO INDIA
According to data from the National Bureau of Statistics, 9.5 million babies were born in China in 2024. This figure represents a decrease of about one-third compared to 14.7 million births in 2019. Despite the preference for giving birth in the Year of the Dragon according to Chinese astrology, which typically leads to higher birth rates, the overall trend remains downward.
With deaths surpassing births, China lost its title as the world's most populous country to India in 2023.
STEPS IN THE OPPOSITE DIRECTION OF THE ONE-CHILD POLICY
The "one-child" policy implemented in China from around 1980 to 2015 was enforced with heavy fines and penalties. In 2015, the policy was relaxed to allow two children, and in 2021, three children were permitted. During this process, birth control methods were promoted by the state, and some services were offered for free. The new tax regulation has come under criticism for contradicting these policies.
EXPANDING FAMILY SUPPORTS
Authorities plan to increase maternity leave from 128 days to 158 days and paternity leave from 30 days. It was also noted that an annual government support of $500 will be provided for children born after January 1, 2025. However, it is emphasized that the rising costs of raising children are the biggest deterrent to fertility in the country.
REACTION FROM EXPERTS AND THE PUBLIC
According to a report by Euronews, Qian Cai, Director of the Demography Research Group at the University of Virginia, stated that the tax on contraceptive products would have a limited effect on increasing fertility, noting that couples who do not wish to have children would not be affected by such financial changes.
Citizens reacting to the decision, such as Hu Lingling, harshly criticized the regulation, expressing that compared to past coercive population policies, the decision is "ruthless."
Experts are concerned that the price increase of contraceptive products may lead to a rise in unplanned pregnancies and sexually transmitted diseases.