China has announced the removal of a longstanding tax exemption for contraceptives, including condoms, effective from January 1, 2026. Under the new law, these products will be subject to a value-added tax (VAT) rate of 13%, marking a significant shift in the country’s approach to reproductive health products.
This decision has ignited discussions across social media platforms, with many users questioning whether the tax change is part of broader efforts by the Chinese government to address the declining birth rate. Critics have voiced concerns that increasing the cost of contraception could negatively impact family planning and interpersonal relationships. One user humorously challenged the rationale behind the decision, asking, “Which expert thought this was a good idea?”
As the country continues to face a declining birth rate, the government has implemented various policies to encourage larger families. China began loosening its strict one-child policy in the mid-2010s, first introducing a two-child limit in 2016, and later allowing couples to have up to three children in 2021. Despite these measures, including tax incentives, extended parental leave, and local subsidies, the authorities have struggled to motivate couples to have more children.
Analysts point to a myriad of factors contributing to the low birth rate, including high living costs, expensive housing, and intense educational pressures. Many families report feeling financially insecure, which further complicates decisions about having children. One social media user remarked that low incomes and limited vacation time were the primary obstacles to increasing the birth rate.
The introduction of VAT on condoms has sparked debate over its potential impact. Some commentators argue that higher costs for contraception could interfere with couples’ private lives and ultimately affect their decisions regarding family size. The general sentiment among critics is that financial burdens must be alleviated rather than exacerbated if the government aims to increase birth rates.
As China’s population begins to age and the number of births declines, the government finds itself at a crossroads. The challenge of balancing economic realities with social policies will likely continue to be a focal point for policymakers in the coming years.
