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China Imposes 13% VAT on Contraceptives as Pronatalist Tax Overhaul Takes Effect

Analysts see a symbolic gesture unlikely to lift birth rates.

Overview

  • The change ends a three-decade VAT exemption on condoms, birth control pills and IUDs and took effect on Jan. 1.
  • Childcare, marriage-related and eldercare services are now VAT‑exempt under the same overhaul intended to encourage family formation.
  • China recorded a third straight annual population decline in 2024, with 9.54 million births, roughly half the level a decade earlier.
  • Public reaction has included ridicule and talk of stockpiling, while health experts warn higher costs could curb access for students and low‑income people, raising risks of unintended pregnancies and STIs.
  • Demographers doubt the tax will affect fertility, citing modest revenue and strained provincial budgets, and reports of officials querying women about menstrual cycles have heightened privacy concerns.