China Announces 13% VAT On Contraceptives To Boost Falling Birth Rate

China has announced plans to begin taxing contraceptive products for the first time in more than 30 years, as part of measures to boost childbirth amid a steep population decline.

Under revised tax laws, contraceptives, including condoms and birth control drugs, will lose their value-added tax exemption and attract a 13 per cent VAT from January 1, 2026.

The move comes as China’s birth rate continues to fall sharply.

Official data indicate that 9.5 million babies were born in 2024, a decrease from 14.7 million in 2019. With deaths now outnumbering births, India overtook China in 2023 as the world’s most populous country.

The policy has triggered backlash on social media, with critics arguing that the high cost of raising children far outweighs the price of contraception, even with the added tax.

Critics described the policy as harsh and ironic, given China’s history of strict family planning rules.