Chinese residents are now required to pay a 13% sales tax on contraceptives from 1 January, while childcare services will be exempt, in a bid to boost birth rates.

An overhaul of the tax system announced late last year removes many exemptions that were in place since 1994, when China was still enforcing its decades-long one-child rule.

It also exempts marriage-related services and elderly care from value added tax (VAT) – part of a broader effort that includes extending parental leave and issuing cash handouts.

Faced with an ageing population and sluggish economy, Beijing has been trying hard to encourage more young Chinese people to marry and couples to have children.

Statistics have shown China’s population has shrunk three years in a row, with just 9.54 million babies born in 2024—around half of the number of births recorded a decade ago.

Regardless, the new tax law on products such as condoms, birth control pills, and devices has sparked concern about unwanted pregnancies and HIV rates, as well as ridicule.

Source: BBC