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China Imposes 13% VAT on Contraceptives in New Year Tax Overhaul

Childcare, marriage services, elder care now VAT-exempt under a pronatal tax shift.

Overview

  • The levy applies to condoms, birth control pills and IUDs, ending a VAT exemption in place since the 1990s family-planning era.
  • Chinese social media users mocked the move and talked of stocking up on condoms, arguing that child‑rearing costs outweigh any change in contraceptive prices.
  • Demographers including Qian Cai and Yi Fuxian say the tax will barely influence reproductive decisions given housing, education and workplace pressures.
  • Public‑health experts warn pricier contraception could reduce access for students and low‑income groups, raising risks of unintended pregnancies and sexually transmitted infections; 2024 data recorded over 670,000 syphilis cases and 100,000 gonorrhea cases.
  • Analysts describe the measure as largely symbolic, estimating roughly 5 billion yuan in revenue, as China logged 9.54 million births in 2024 and a third straight year of population decline.