For three dedaces, Chinese citizens would not pay taxes on contraceptives, which includes drugs and condoms. Now, Chairman Xi has ordered a 13% value-added tax on contraceptives to discourage fertility. The move comes as the population has dropped for three years in a row, and the drop is only expected to plummet in upcoming years.
China taxes condoms, contraceptive drugs in bid to spur birth rate – Reuters
from news.google.com
HONG KONG, Jan 2 (Reuters) – China removed a three-decade-old tax exemption on contraceptive drugs and devices from January 1 in new steps to spur a flagging birth rate.
Condoms and contraceptive pills now incur value-added tax of 13%, the standard rate for most consumer goods.
The move comes as Beijing struggles to boost birth rates in the world’s second-largest economy. China’s population fell for a third consecutive year in 2024 and experts have cautioned the downturn will continue.
China exempted childcare subsidies from personal income tax and rolled out an annual childcare subsidy last year, following a series of “fertility-friendly” measures in 2024, such as urging colleges and universities to provide “love education” to portray marriage, love, fertility and family in a positive light.
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