HONG KONG — China has removed a decades-old tax exemption on contraceptive drugs and devices, effective January 1, as part of the government’s latest measures to address the country’s declining birth rate.
Under the new rule, condoms, contraceptive pills, and other fertility-related products are now subject to a 13% value-added tax, aligning them with China’s standard rate for most consumer goods. The move marks a shift in Beijing’s approach to population policy, reflecting growing concern over the country’s demographic challenges.
China’s population declined for the third consecutive year in 2024, raising alarms among policymakers and demographers. Experts predict that without aggressive interventions, the downward trend could continue, threatening the workforce and long-term economic growth.
The tax change follows a series of government initiatives in 2024 designed to make family life more attractive. These include personal income tax exemptions on childcare subsidies, an annual childcare allowance for parents, and education campaigns in colleges and universities promoting “love education,” which encourages positive views of marriage, fertility, and family life.
During the annual Central Economic Work Conference last month, top leaders reiterated the government’s commitment to stabilizing the birth rate by promoting “positive marriage and childbearing attitudes,” signaling that population concerns remain a national priority.
China’s fertility decline is the legacy of decades of population control measures, most notably the one-child policy enforced between 1980 and 2015. Rapid urbanization, rising housing costs, expensive education, job insecurity, and a slowing economy have further discouraged young couples from marrying or having children. According to the National Bureau of Statistics, the total fertility rate fell to a record low of 1.0 children per woman in 2024, well below the replacement level of 2.1 needed to maintain population stability.
Analysts note that while Beijing has scrapped some restrictions, such as the one-child policy, broader social and economic pressures continue to make childbearing less feasible for many. “Taxing contraceptives may seem counterintuitive, but it reflects a broader attempt to regulate reproductive behavior in line with state objectives,” said Wang Feng, a sociology professor at Peking University.
The new VAT on contraceptives highlights the challenges China faces in reversing demographic decline, as policymakers balance economic incentives with social engineering in one of the world’s most populous nations.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
