From 1 January, contraceptives will be subject to a 13% VAT rate – part of a carrot-and-stick approach by the government to increase births
China is set to impose a value-added tax (VAT) on condoms and other contraceptives for the first time in three decades, as the country tries to boost its birthrate and modernise its tax laws.
From 1 January, condoms and contraceptives will be subject to a 13% VAT rate – a tax from which the goods have been exempt since China introduced nationwide VAT in 1993.
The measure was buried in a VAT law passed in 2024 in an effort to modernise China’s tax regime. VAT accounts for nearly 40% of China’s total tax revenue.
I’m no expert but this really doesn’t seem like the right solve for falling birth rates.
they tried nothing and they are all out of ideas, its not unique to china either. they are tyring to avoid discussing the actual causes.