China will begin imposing a 13% value-added tax on contraceptive drugs and devices, including condoms, ending a three-decade exemption tied to the one-child policy era. The new VAT rules take effect in January and accompany fresh exemptions for childcare services, elder-care institutions, disability services and marriage-related businesses — all aimed at encouraging larger families.
The policy shift comes amid a steep drop in births, with only 9.54 million recorded in 2024. Despite expanded parental leave, childcare investments and financial incentives, many young adults cite high living costs and economic uncertainty as reasons to delay or avoid having children. Raising a child to age 18 is estimated to cost more than 538,000 yuan, making family planning a financial challenge for many.
Demographers say the condom tax is mostly symbolic and unlikely to meaningfully change birth trends. The move has also sparked public debate as HIV cases continue to rise in China, with concerns that higher prices may discourage condom use and increase health risks. Social media reaction reflects skepticism about whether the tax will influence attitudes toward parenthood.
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