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China to Reintroduce 13% Tax on Condoms From 2026 to Boost Falling Birth Rate
China is preparing to reintroduce taxes on contraceptives after more than three decades, as the country struggles to reverse its rapidly declining birth rate.
Beginning January 2026, condoms and all other contraceptive products will attract a 13% Value-Added Tax (VAT) under China’s newly revised VAT Law. These items have been exempt from taxation since 1993, when the nation encouraged strict birth control under the one-child policy, which remained in place from 1980 to 2015.
Although the government has not issued an official statement, the move signals a strategic shift toward discouraging contraception as part of broader efforts to raise fertility rates.
In recent years, China has introduced several pronatalist measures, including cash incentives for newborns, extended maternity and paternity leave, and discouragement of abortions that are not medically essential.
???? China’s Shrinking Population
China’s population decline has continued for the third straight year. According to the National Bureau of Statistics:
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Total population dropped by 1.39 million in 2024.
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Births rose slightly to 9.54 million, but remain far below replacement levels.
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Birth rate increased marginally to 6.77 per 1,000, from 6.39 in 2023.
UN projections indicate a dramatic demographic shift: the number of Chinese women aged 15–49 may fall by over two-thirds by 2100, dropping below 100 million.
China’s new taxation policy is being viewed as yet another attempt to reverse this demographic decline and incentivise childbirth.
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Published: Dec 03, 2025
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