Story perspectives

China Ends Contraceptive Tax Exemption Amid Birth Rate Crisis

12/2/2025

Summary

Story summary

China will levy a 13% value-added tax on contraceptive drugs and devices starting January 2026, ending a 30-year exemption.
The change targets declining birth rates, with 9.54 million births in 2024.
The revised VAT Law also provides exemptions for childcare and elder-care services.
Critics warn higher costs could discourage condom use amid rising HIV rates.
On Weibo, users questioned the policy’s effectiveness in promoting childbirth and feared unplanned pregnancies.

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Story summary

China will levy a 13% value-added tax on contraceptive drugs and devices starting January 2026, ending a 30-year exemption.
The change targets declining birth rates, with 9.54 million births in 2024.
The revised VAT Law also provides exemptions for childcare and elder-care services.
Critics warn higher costs could discourage condom use amid rising HIV rates.
On Weibo, users questioned the policy’s effectiveness in promoting childbirth and feared unplanned pregnancies.