China will impose a 13 percent tax on condoms and contraceptive drugs starting January 2026 as officials struggle to reverse declining birth rates while more couples choose to remain child-free.
The newly revised Value-Added Tax Law removes a 30-year exemption on contraceptive products that dates back to China's strict one-child policy era. Under the law, consumers will pay the levy on all contraceptive items, including condoms and birth control pills, which had been tax-free since 1993. The amendment also designates childcare services, elderly care facilities, and marriage-related services as tax-exempt to encourage family formation.
China's Declining Birth Rate
The policy shift reflects deepening concerns over China's demographic crisis. The country recorded just 9.54 million births in 2024, half the number in 2016, while deaths reached 10.93 million, marking the third consecutive year of population decline.
China's fertility rate stands at approximately 1.0, far below the 2.1 replacement level needed to maintain population stability. United Nations projections warn China's population could shrink by 204 million by 2054, according to Yahoo News.
Despite government incentives, a growing number of young couples are embracing the "DINK" lifestyle, dual income, no kids. Social media platforms show the DINK hashtag has garnered over 731 million views on Xiaohongshu, with many users sharing their decision to postpone or forgo parenthood.
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Couples cite high child-rearing costs, career concerns, and economic uncertainty as primary reasons. A 2024 report estimated raising one child to age 18 costs approximately 538,000 yuan ($75,000), making parenthood financially daunting for many, Free Malaysia Today reported.
Experts view the contraceptive tax as largely symbolic rather than effective. He Yafu, a demographer at the Yuwa Population Research Institute, stated the measure "holds greater symbolic significance than practical effect" in fostering a pro-natal social atmosphere. Critics argue the policy fails to address the fundamental economic barriers to childbearing.
Taxes on Condoms and Contraceptive Pills
Some public health advocates warn that increased condom prices could hinder STD prevention efforts, noting China's HIV infection rate rose from 0.37 to 8.41 per 100,000 people between 2002 and 2021.
The tax comes as Chinese authorities have implemented various pronatalist measures, including annual subsidies of $500 per child under age three and expanded childcare services. However, cultural shifts, rising living costs, and the legacy of the one-child policy continue to limit effectiveness.
Many young people prioritize financial stability and careers over marriage and parenting, with marriage rates dropping to a historic low of 4.3 per 1,000 people in 2024. As one Beijing resident explained, couples are waiting for the economy to stabilize before starting families, reflecting widespread uncertainty about China's economic future, as per Statista.
