China's Bold Move: Taxing Condoms to Boost Birth Rates

Thu Jan 01 2026 05:50:48 GMT+0200 (Eastern European Standard Time)

In a bid to counter declining birth rates, China introduces a 13% sales tax on condoms while making childcare services tax-free. What's behind this controversial decision?

Starting January 1, 2025, China will implement a 13% sales tax on contraceptives, including condoms, as part of a strategy to increase its declining birth rates. In contrast, childcare services will be exempt from such taxes. This tax reform, aimed at addressing the country's ageing population and stagnant economy, has sparked debate over its efficacy and potential consequences, including increased unwanted pregnancies. Critics argue that the government’s focus may be misguided and that deeper societal changes are needed to encourage young couples to have children.

Chinese people will pay a 13% sales tax on contraceptives from 1 January, while childcare services will be exempt, as the world's second-largest economy tries to boost birth rates.

An overhaul of the tax system announced late last year removes many exemptions that were in place since 1994, when China was still enforcing its decades-long one-child rule.

It also exempts marriage-related services and elderly care from value added tax (VAT) - part of a broader effort that includes extending parental leave and issuing cash handouts.

Faced with an ageing population and sluggish economy, Beijing has been trying hard to encourage more young Chinese people to marry, and couples to have children.

Official figures show that China's population has shrunk three years in a row, with just 9.54 million babies born in 2024. That is around half of the number of births recorded a decade ago, when China started to ease its rules on how many children people could have.

Still, the tax on contraceptives, including condoms, birth control pills, and devices, has sparked concern about unwanted pregnancies and HIV rates, as well as ridicule. Some point out that it would take much more than pricey condoms to persuade them to have children.

As one retailer urged shoppers to stock up ahead of the price hike, a social media user joked: I'll buy a lifetime's worth of condoms now. People are acutely aware of the substantial difference between the cost of contraception and raising a child.

China is regarded as one of the most expensive countries to raise a child, owing to high school fees in a highly competitive academic environment and the difficulties women face in balancing work and parenting.

The ongoing economic slowdown, exacerbated by a property crisis, has contributed to feelings of uncertainty among families, particularly young people.

Critics argue that increasing the cost of contraception could lead financially struggling individuals to take risks regarding reproductive choices, which could have serious implications.

Demographers and social observers largely agree that a comprehensive analysis needs to be undertaken to tackle the declining birth rates effectively. Many believe that improving support systems for families and understanding the shifting sociocultural landscape is fundamental to this effort.

The Chinese government's attempts to stimulate population growth are often seen as overly intrusive, reflecting a misunderstanding of the complexities surrounding personal choices that lead to marriage and childbearing.

In summary, while the government's tax overhaul aims to reverse declining fertility rates, its approach raises more questions than answers in terms of understanding the real motivations and challenges faced by today’s young Chinese couples.