China Imposes 13% Tax on Contraceptives Amid Population Decline Concerns
BEIJING — On January 1, 2026, China implemented a 13% value-added tax (VAT) on contraceptives, including condoms and birth control pills, a move that has ignited public criticism as the country struggles with a sustained population decline and an aging society. This policy shift comes as part of a broader government effort to encourage higher birth rates by removing long-standing tax exemptions on contraceptives while exempting childcare, marriage-related, and elderly care services from VAT.
Since 1994, contraceptives had been exempt from VAT, a legacy of China’s decades-long one-child policy. However, with official data showing the Chinese population has shrunk for three consecutive years and births falling to approximately 9.54 million in 2024—roughly half the number recorded a decade ago—Beijing is now reversing course. The government hopes that taxing contraceptives will discourage their use and promote larger families, a strategy that has raised concerns among health experts and the public alike.
China’s demographic challenges have become increasingly urgent. The population pressures have been mounting since births dropped from about 14.7 million in 2019 to under 10 million in recent years. In 2023, India surpassed China as the world’s most populous country, underscoring the scale of China’s demographic shift. The Chinese government has simultaneously exempted childcare services and elderly care from VAT, aiming to reduce the financial burden on families and support the aging population.
Public reaction on social media has been mixed, with some users mocking the new tax by joking about stockpiling condoms before prices rise, while others argue that the cost of contraception is negligible compared to the expenses involved in raising children. Daniel Luo, a 36-year-old from Henan province, told the BBC that the price increase would not affect his decision to have only one child, likening it to minor fare hikes in public transportation that do not change daily behavior.
However, there are deeper worries about the policy’s unintended consequences. Rosy Zhao, a resident of Xi’an, expressed concerns that making contraception more expensive could lead financially strained individuals, including students, to take greater risks. Health experts have echoed these fears, warning that reduced access to affordable contraception could increase unintended pregnancies and the spread of sexually transmitted infections (STIs). According to data from China’s National Health Commission and the National Medical Products Administration, the country recorded over 670,000 cases of syphilis and more than 100,000 cases of gonorrhea in 2024.
China’s demographic policies have undergone significant changes since the abolition of the one-child policy in 2015. Despite efforts to encourage larger families, including financial incentives and social campaigns, birth rates have continued to decline. The introduction of the contraceptive tax is a controversial new approach that reflects the government’s struggle to reverse demographic trends that threaten economic growth and social stability.
Experts from the Centers for Disease Control and Prevention have noted that access to affordable contraception is critical for public health and family planning, cautioning that policies increasing the cost of contraceptives may have adverse effects. Meanwhile, Beijing’s exemption of childcare and elderly care services from VAT aims to alleviate some financial pressures on families, but it remains to be seen whether these measures will be sufficient to counteract the population decline.
As China navigates this complex demographic landscape, the new contraceptive tax highlights the challenges faced by governments worldwide in balancing population control, public health, and economic priorities.
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