The Chinese government has introduced a 13 per cent sales tax on contraceptives while exempting childcare services from tax, as part of efforts to reverse the country’s declining birth rate.
According to News, the new policy took effect on January 1, ending over three decades of tax exemption on contraceptives. The exemption had been in place since 1994, during the era of China’s strict one-child policy.
Official figures show that China’s population has declined for the third consecutive year, with only 9.54 million babies born in 2024 about half the number recorded a decade ago.
The revised tax framework, announced in late 2025, removes legacy VAT concessions on contraceptives while extending tax relief to childcare services, elderly care and marriage-related expenses.
Authorities have also rolled out additional measures such as longer parental leave and cash incentives for families.
However, the decision to tax contraceptives has sparked widespread debate and criticism online.
Daniel Luo, a 36-year-old resident of Henan province with one child, said the policy was unlikely to encourage people to have more children.
It’s like when subway fares increase. Even if the fare goes up by one- or two-yuan, people don’t change their habits. You still have to take the subway, he told the BBC.
Others have raised concerns about possible unintended consequences. Rosy Zhao, who lives in the central city of Xi’an, warned that making contraception more expensive could push students and low-income individuals to take risks.
She described this as the most dangerous potential outcome of the policy.
Some experts have also questioned the government’s motives. Demographer Yi Fuxian suggested that the tax may be aimed more at raising revenue as China grapples with rising debt and a struggling property market, rather than genuinely boosting birth rates.
