China has announced a new tax on contraceptives as part of sweeping fiscal reforms aimed at boosting birth rates, even as childcare-related services are set to become tax-free from January 1.
Under the revised system, condoms and other contraceptives will attract a 13 percent sales tax, ending long-standing exemptions that date back to 1994, when the country was enforcing its one-child policy. The changes are part of a broader overhaul designed to encourage marriage and childbearing in the world’s second-largest economy.
Alongside the contraceptive tax, authorities have introduced tax exemptions for childcare services, marriage-related costs and elder care. The reforms are also accompanied by measures to extend parental leave, according to reports by the BBC.
China is grappling with a rapidly ageing population, a shrinking workforce and slowing economic growth. In response, the government has intensified efforts to persuade young people to start families. Official figures show the country’s birth rate has declined for three consecutive years, with just 9.54 million babies born in 2024 — roughly half the number recorded a decade ago.
However, the decision to tax condoms has sparked public debate and concern. Critics warn the policy could unintentionally increase the risk of unplanned pregnancies and the spread of sexually transmitted infections.
Many have questioned whether higher condom prices will have any meaningful impact on people’s decisions about having children. “A small increase in the price of condoms won’t suddenly make me want more children,” said Daniel Luo, a 36-year-old resident, reflecting a view shared by many young adults.
Others worry that financial pressures could push some people, particularly the youth, to take risks by avoiding contraception altogether.
Experts remain divided on the effectiveness of the move. Some argue the policy is less about encouraging births and more about raising government revenue at a time of economic strain. There are also concerns about uneven implementation, as enforcement depends heavily on local authorities with varying capacity and resources.
Adding to the controversy are reports of local officials contacting women to inquire about their reproductive plans, raising fears of excessive state involvement in private family decisions — a sensitive issue given China’s history of strict population controls.
As social attitudes continue to evolve, many young Chinese citizens say relationships, marriage and raising children have become increasingly costly and emotionally demanding. China’s struggle to lift birth rates mirrors a wider global trend, with many countries facing similar demographic challenges despite policy interventions.
