'Condom Tax' in China: Beijing Introduces 13% Tax on Contraceptive Drugs and Devices Including Condoms After 32 Years To Boost Birth Rates

Mumbai, December 3: China has introduced a "condom tax" in a bid to boost birth rates in the country. It is learnt that China will impose a value-added tax on contraceptive drugs and devices, including condoms, for the first time in three decades. The move aims to reverse plunging birth rates in the country, which threaten to further slow the country's economy. The value-added tax on contraceptive drugs, including condoms, will come into effect in January 2026.

According to a report in Bloomberg, consumers will now have to pay a 13 per cent tax on items which were VAT-exempt since 1993 under the newly revised Value-Added Tax law. It must be noted that in 1993, China enforced a strict one-child policy and actively promoted birth control during which tax on condoms and other contraceptive drugs were exempted. China: Population Falls for 3rd Straight Year, Posing Challenges for Its Government and Economy,

While the news has drawn mixed reactions, there seems to be good news too. Under the newly revised Value-Added Tax law, the Chinese government is offering incentives for prospective parents. The incentives will be in the form of exempting child care services (nurseries to kindergartens) as well as elder-care institutions, disability service providers and marriage-related services.

The move comes at a time when an ageing China is shifting from limiting births to encouraging people to have more children. Notably, China's population has declined for three consecutive years, with the country recording just 9.54 million births in 2024. This is hardly half of the 18.8 million registered nearly a decade ago, when China lifted the one-child policy. China's Marriage Rate Drop to Record Low in 2024, Upswing of Divorces.

In response to the newly revised Value-Added Tax law, China has rolled out a series of pro-natalist policies such as offering cash handouts, improving childcare services and extending paternity and maternity leaves. Beijing has also announced guidelines to reduce the number of abortions in the country, which aren't deemed "medically necessary". This is in sharp contrast to the coercive reproductive controls of the one-child era, when China enforced abortions and sterilisations.

(The above story first appeared on LatestLY on Dec 03, 2025 10:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).