Wed, 31 Dec 2025

Wed, 31 Dec 2025 Condom tax and cheaper childcare: China's plan to boost birth rates

Chinese people pay a 13% sales tax on contraceptives from 1 January, while childcare services are exempt.
China will introduce a 13% sales tax on contraceptives from January 1, while exempting childcare services and marriage-related services from value-added tax (VAT). The move aims to boost birth rates in the country's aging population. However, critics argue that making contraception more expensive could lead to unwanted pregnancies and increased HIV rates. Some people are skeptical about the government's efforts, saying that expensive condoms won't persuade them to have children. The tax overhaul removes many exemptions that were in place since 1994, when China enforced its one-child rule. The country is trying to encourage young Chinese people to marry and have children due to a shrinking population and sluggish economy. Official figures show that China's population has declined for three consecutive years, with just 9.54 million babies born in 2024. Demographers are divided on the effectiveness of the tax hike on birth rates. Some believe it is an attempt by Beijing to collect taxes wherever possible, while others see it as a symbolic effort to encourage people to have children. However, experts point out that the policies and subsidies will need to be implemented by provincial governments, which may struggle with resources. The government's approach to urging people to have children has also been criticized for being too intrusive and failing to understand the social changes driving low birth rates. Other countries, such as South Korea and Japan, are also struggling to lift birth rates due to similar factors like childcare burden and declining marriage rates.
  >>