China

China Taxes Contraceptives Amid Population Decline

Is taxing contraceptives punishing the poor, or are free childbirth policies the real solution to demographic decline?

Published JAN 2

China Taxes Contraceptives Amid Population Decline

Story

Above: People admire lanterns in a sightseeing area in Nanjing in eastern China's Jiangsu province on Jan. 1, 2026. Image credit: Fang Dongxu/Feature China/Future Publishing/Getty Images

The Facts

China removed a three-decade-old tax exemption on contraceptives effective Thursday, imposing a 13% value-added tax on items such as condoms and birth control pills. The policy change also sees child care services, marriage-related services and elderly care exempted from the standard tax.
SBS News
FOX News
Metro
Condoms until now cost around $0.60 per piece in China, with the exemptions being in place since 1994. The country reportedly recorded a slight rise in births in 2024, but the number was still lower than the number of deaths.
voidotid
CNN
FOX News
China's population declined for the third consecutive year in 2024, with approximately 9.54 million babies born, roughly half the number recorded a decade earlier. Its birth rate per 1,000 people stood at 6.77 in 2024, matching the second-lowest level in its history.
ChosunBiz
CNN
The Telegraph
The one-child policy was implemented in China in 1980 and was in effect until it was abolished in 2015. The policy was enforced through fines and penalties — even forced abortions in some cases — with children born outside the policy sometimes denied household registration.
CNN
FOX News
Metro
China is deemed one of the most expensive countries to raise a child, with costs estimated at around 538,000 yuan ($76,880) from birth to age 18. The YuWa Population Research Institute cited child care burdens, work pressures and school fees as key reasons for this.
The Times of India
Newsweek
Metro
In recent years, China has taken various steps to encourage births like an annual subsidy of 3,600 yuan ($514) for families with children under age three and extended parental leave. Colleges are urged to provide "love education," portraying marriage and family positively.
Le Monde
Firstpost
The Telegraph

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Anti-China narrative

Taxing contraceptives punishes ordinary people who can't afford children while doing nothing to address the real economic barriers to parenthood. The 13% VAT on condoms and birth control shifts costs onto struggling workers and singles, risking increased STDs and unintended pregnancies among vulnerable populations. This disciplinary tactic treats bodies as political tools rather than fixing sky-high childcare costs and brutal work schedules that actually prevent people from having kids.

Tibetan Review

Time

Narrative B

Making child birth essentially free under national medical insurance by 2026 represents genuine investment in families facing demographic challenges. Expanding coverage to include prenatal care, assisted reproduction and painless delivery, while providing direct cash subsidies, demonstrates shared responsibility between the state and families. These policies address real financial barriers by covering medical costs and child care rather than symbolic gestures.

XINHUA

The Telegraph