The Chinese government has officially removed a three-decade-old tax exemption on contraceptive drugs and devices as part of a series of strategic measures aimed at reversing the nation’s declining birth rate.
Starting from January 1, 2026, essential items such as condoms and birth control pills are now subject to a 13% value-added tax, which is the standard rate for most consumer goods in the country. Okay News learnt that this policy shift follows a third consecutive year of population contraction in 2024, prompting Beijing to intensify its efforts to stabilize demographic trends in the world’s second-largest economy.
This fiscal change coincides with other government-led initiatives designed to alleviate the financial burden of parenting and encourage marriage among young adults. In the past year, China has introduced childcare subsidies and personal income tax exemptions for childcare expenses, while also urging universities to implement “love education” programs to promote positive attitudes toward family and fertility.
Despite these efforts, experts point to the high cost of education, urban living, and persistent job uncertainty as significant barriers that continue to discourage many from starting families. The current demographic crisis is largely viewed as a long-term consequence of the one-child policy, which was in effect from 1980 to 2015, coupled with rapid urbanization that has fundamentally altered social structures in the country.
