China has imposed a 13 per cent tax on condoms, contraceptive drugs, and devices, ending three decades of tax exemption, in a bid to tackle its declining birth rate. The move, effective January 1, comes after the country recorded three consecutive years of population decline since 2024.
Following the strict one-child policy from 1980 to 2015, authorities are now promoting childbirth to sustain economic growth. Measures include a 90 billion yuan ($12.7 billion) childcare subsidy program and an annual 3,600 yuan allocation for each child under three in 2025. Healthcare insurance will also cover childbirth expenses.
