s introduced a 13% sales tax on contraceptives, including condoms and birth control pills, starting January 1. At the same time, childcare services will be tax-free as part of efforts to encourage more couples to have children. The government is also extending parental leave and offering cash handouts to support families.
China is facing a shrinking population and slower economic growth. Official figures show the country’s population has declined for three consecutive years, with only 9.54 million babies born in 2024—about half the number from a decade ago.
The contraceptive tax has drawn criticism. Some warn it could increase unintended pregnancies and health risks, while others mock the idea that higher condom prices will encourage people to have children.
Experts note the policy may be more about raising revenue than boosting birth rates. Last year, China collected nearly $1 trillion in VAT, accounting for close to 40% of total tax income. Meanwhile, the high cost of raising children—driven by school fees and the challenges women face balancing work and parenting—continues to discourage young couples.
Reactions among citizens are mixed. Daniel Luo, 36, from Henan, says the tax rise is minor and won’t affect his habits. Rosy Zhao, from Xi’an, worries that higher costs for essential contraception could lead students and low-income families to take risks. Reports of officials contacting women about their menstrual cycles and family planning have also sparked concerns about government intrusion.
Analysts say social pressures, stress, and lifestyle changes are bigger obstacles than financial incentives. Many young people avoid traditional relationships, turning instead to technology or self-satisfying alternatives, showing that reversing China’s falling birth rate requires more than tax adjustments—it’s a complex social issue.
