Explained: China’s new contraceptive tax and the limits of pro-birth policies
Despite a series of incentives aimed at encouraging couples to have more children, Chinaโs population has continued to fall. Beijing: China has begun imposing a 13 per cent sales tax on contraceptives, including condoms, birth control pills and devices from January 1 2026, while exempting childcare services from value added tax. The move is part of a broader tax overhaul announced in late 2025 that removes exemptions in place since 1994, when China was still enforcing its decades-long one-child policy, according to the BBC. Under the revised tax structure, marriage-related services and elderly care have also been exempted from VAT.…