Archive · 3 Jan 2026
China taxes condoms to boost birth rates
China is making condoms and contraceptive pills more expensive by adding a 13% tax.
This is because the government wants more people to have babies.
For a long time, China had a rule where people could only have one child, and now there are fewer babies being born.
The tax will only make these items a little more expensive, but the government hopes it will encourage people to have more children.
They are also giving some benefits to families, like help with childcare and longer leave for parents.
China's population is shrinking, and they want to change that.
China reintroduces 13% VAT on condoms and contraceptives effective January 1, 2026.
The tax aims to encourage higher birth rates amid a declining population.
China's population has been decreasing for three consecutive years.
The government is also offering incentives like VAT exemptions for childcare and marriage services.
The tax is expected to generate about 5 billion yuan ($700 million) annually.
- Who
- Chinese government
- What
- Reintroduced tax on condoms and contraceptives
- When
- Effective January 1, 2026
- Where
- China
- Why
- To boost declining birth rates
- Tax Rate
- 13% VAT
- Effective Date
- January 1, 2026
- Current Birth Rate
- Declining for 3 years
- 2024 Births
- 9.5 million
- Estimated Annual Revenue
- 5 billion yuan ($700 million)
- China's Population
- 1.41 billion
- India's Population
- 1.47 billion
