China has announced the end of a long-standing tax exemption for contraceptives, including condoms, which will be subject to a value-added tax (VAT) of 13% starting from January 1, 2026. This legislative change has ignited discussions across social media platforms, with users debating its potential connection to the government’s efforts to address the country’s declining birth rate.
With this decision, contraceptives will no longer be classified as tax-exempt goods. This move has prompted mixed reactions, as many commenters question the rationale behind imposing higher costs on contraception. One user criticized the government, asking “which expert” proposed the idea, suggesting that increased expenses could disrupt couples’ private lives and negatively impact relationships in the long run.
China’s struggle with its low birth rate is not a new issue. Over the past decade, the country has gradually relaxed its stringent one-child policy, which was established in the late 1970s. In 2016, the government introduced a two-child limit, allowing families to have more than one child. By 2021, this policy evolved further to permit couples to have up to three children, reflecting the government’s response to a rapidly aging population and the onset of population decline.
Despite these policy changes, the government has faced challenges in encouraging couples to have more children. Local authorities have implemented various incentives, including tax breaks, extended parental leave, and subsidies aimed at alleviating the financial burdens of raising children. Yet, many families cite high living costs, expensive housing, intense educational pressures, and job insecurity as significant deterrents to expanding their families.
Analysts believe that the new VAT on condoms could exacerbate these existing challenges. Critics argue that raising costs may further dissuade couples from considering parenthood. The decision has drawn attention to the broader socioeconomic factors contributing to the low birth rate in China, where many young couples prioritize financial stability and career advancement over starting families.
As discussions continue, it remains to be seen how this change will affect family planning decisions in China. The government’s ongoing efforts to balance economic growth with demographic challenges will undoubtedly be a focal point in the coming years.
