China Implements Condom Tax, Childcare Exemptions to Encourage Births

Beijing is implementing a new tax system designed to encourage higher birth rates by taxing contraceptives and exempting childcare services, according to reports from BBC News. Starting January 1, individuals in China will face a 13% sales tax on contraceptives.

The tax overhaul, announced late last year, eliminates exemptions that had been in place since 1994, when China was still enforcing its one-child policy. The changes also exempt marriage-related services and elderly care from value-added tax (VAT).

These tax adjustments are part of a broader government effort to address the country's aging population and sluggish economy. The initiative includes extending parental leave and providing cash handouts to families. The goal is to incentivize couples to have more children.