China Reverses Policy, Imposes New Tax on Condoms to Tackle Falling Birth Rate

In a major policy shift, China has announced it will impose a tax on contraceptive products for the first time in over three decades. The move is part of a series of intensifying national efforts to reverse a sharp and persistent decline in the country’s birth rate.

Under the newly revised tax laws, items such as condoms and birth control drugs will lose their long-standing Value-Added Tax (VAT) exemption. Starting January 1, they will be subject to a 13% VAT.

The decision is a direct response to a deepening demographic crisis. Official 2024 data shows a dramatic fall in births to just 9.5 million, down from 14.7 million in 2019. With annual deaths now exceeding births, China lost its title as the world’s most populous nation to India in 2023.

The new tax has ignited significant public criticism and mockery on Chinese social media. Many users argue the policy is counterproductive, pointing out that the cost of raising a child dwarfs the price of contraception, even with the added tax. One mother, Hu Lingling, told media the policy “strengthened her resolve” against having more children, quipping that she would “lead the way in abstinence.” She described the government’s approach as harsh and ironic, given the nation’s history of restrictive family planning policies.