China taxes condoms, contraceptive drugs in bid to spur birth rate

China removed a three-decade-old ‍tax exemption on ​contraceptive drugs and devices from January 1 ⁠in new steps to spur a flagging birth rate.

Condoms and contraceptive pills now incur value-added tax of 13%, ‌the standard ‌rate for most consumer goods.

The move comes as ‌Beijing struggles to boost birth rates in the world's second-largest economy. China's population fell for a third consecutive year in 2024 and experts have cautioned ​the downturn will continue. China exempted ​childcare subsidies from personal income tax ‌and rolled out ‍an annual childcare subsidy last ‍year, following a series of "fertility-friendly" measures in 2024, ‌such as urging colleges and universities to provide "love education" to portray marriage, love, fertility and family in a positive light. Top leaders again pledged last month at the annual Central Economic Work Conference to promote "positive ‍marriage and childbearing attitudes" to stabilise birth rates.Also Read: One-child policy- China wants more babies; people aren't sure


China's birth rates have been ‍falling for ⁠decades as ⁠a result of the one-child policy China implemented from 1980 to 2015, and rapid urbanisation.

The high cost of childcare and education as well as job uncertainty and a slowing economy have also discouraged many young Chinese from getting married and starting a family.