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China Reintroduces 13% VAT on Contraceptives, Including Condoms, Citing Falling Birth Rates

10:10 PM, 12/04/2025
China Reintroduces 13% VAT on Contraceptives, Including Condoms, Citing Falling Birth Rates

China will reintroduce a 13% value-added tax on contraceptives, including condoms, effective Jan. 1, 2026 — the first such levy since 1993. The move is part of a wider tax revision that removes VAT from childcare, elder-care and marriage services to encourage family formation and blunt the economic impact of a shrinking, aging population. Critics warn higher contraception costs could reduce use and contribute to rising HIV and other STI risks. China recorded 9.54 million births in 2024, about half the level seen a decade earlier.

China Reintroduces 13% VAT on Contraceptives

China's government will reintroduce a 13% value-added tax (VAT) on contraceptives — including condoms, contraceptive drugs and related devices — effective Jan. 1, 2026. According to Bloomberg and NewsNation reporting, this is the first time such a tax has been applied since 1993.

Officials say the change is part of a broader fiscal and social-policy package intended to ease the economic effects of an aging and shrinking population. As part of the revision, the government will remove VAT from childcare services, elder-care institutions and certain marriage-related services to encourage family formation and reduce costs associated with raising children.

Demographic Context

China has seen its population decline for three consecutive years. The country recorded 9.54 million births in 2024 — roughly half the 18.8 million births reported about a decade earlier after the relaxation of the one‑child policy — prompting policymakers to pursue measures to stabilize the workforce and public finances.

Public-Health Concerns

Public-health advocates and critics caution that adding a 13% VAT to contraceptives could raise retail prices and discourage use. Some worry this may lead to increased unprotected sex and contribute to rising rates of HIV and other sexually transmitted infections in parts of the country, where cases have been growing in recent years.

Official Rationale: Authorities emphasize that the tax adjustments are designed to balance demographic and fiscal pressures while lowering the cost of childcare and elder care.

Timing and Sources: The VAT takes effect Jan. 1, 2026. Reporting cited Bloomberg and Nexstar Media/NewsNation.

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