
China's Contraceptive Tax: A Bold Move to Boost Birth Rates
China is implementing a 13% sales tax on contraceptives starting January 1st while exempting childcare services from VAT, aiming to reverse declining birth rates amid a shrinking population and sluggish economy. This tax overhaul, impacting condoms, birth control pills, and devices, is part of a broader effort that includes marriage-related service exemptions and extended parental leave, despite concerns about potential impacts on unwanted pregnancies and HIV rates. The move comes as China's birth rate has halved in the last decade, with only 9.54 million babies born in 2024.
















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