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China introduces sales tax on contraceptives amid population decline
From 1 January, China will impose a 13% sales tax on contraceptives, including condoms and birth control pills, as part of a broader tax reform aimed at reversing the country's declining birth rates. Meanwhile, childcare and elderly care services will remain exempt from value-added tax (VAT).
Tax overhaul targets long-standing exemptions
The new tax policy removes exemptions that have been in place since 1994, when China enforced its one-child policy. The reform also excludes marriage-related services and elderly care from VAT, aligning with government efforts to encourage family growth through extended parental leave and cash incentives.
Population crisis drives policy shifts
China's population has contracted for three consecutive years, with only 9.54 million births recorded in 2024-roughly half the number from a decade ago. The government has relaxed family planning rules in recent years but faces challenges in reversing the trend amid economic uncertainty and high child-rearing costs.
Public reaction mixed
The tax on contraceptives has drawn criticism, with concerns over potential rises in unintended pregnancies and HIV transmission. Some social media users mocked the policy, arguing that the cost of condoms is negligible compared to the financial burden of raising children.
"I'll buy a lifetime's worth of condoms now."
Social media user
Others, like 36-year-old Daniel Luo from Henan province, dismissed the tax hike as insignificant. "A box of condoms might cost an extra 5 to 20 yuan-affordable for most," he said. However, Rosy Zhao from Xi'an warned that higher costs could push financially struggling individuals to forgo contraception, risking unintended consequences.
Experts question policy effectiveness
Demographer Yi Fuxian of the University of Wisconsin-Madison called the tax hike "overthinking," suggesting Beijing is prioritizing revenue amid economic struggles. China's VAT revenue reached nearly $1 trillion in 2024, accounting for 40% of total tax collection.
Henrietta Levin of the Center for Strategic and International Studies described the move as "symbolic," noting that provincial governments-many burdened by debt-may struggle to implement supportive policies like subsidies.
Cultural and economic barriers persist
Critics argue that China's approach overlooks deeper societal shifts, including the decline of marriage and dating. Research highlights the disproportionate childcare burden on women, while economic pressures-such as a property crisis and competitive education costs-deter family expansion.
Mr. Luo attributed rising sex toy sales to a preference for "easier" online interactions over human connections. "Young people face higher expectations and more stress than previous generations," he said. "Everyone's exhausted."
Government overreach concerns
Reports of local officials inquiring about women's menstrual cycles and family plans have fueled backlash, with Levin warning that intrusive policies risk alienating the public. "The party's involvement in personal decisions may undermine its own goals," she said.
