World News
China Tax Condoms, other Contraceptives Amid Shrinking Population
China has begun imposing a 13% value-added tax (VAT) on contraceptive drugs and devices, ending a 30-year exemption, in a bid to address the country’s declining birth rate. Effective January 1, condoms, contraceptive pills, and related products are now taxed at the standard consumer rate, Talk Nigeria News gathered.
The move comes as China faces a shrinking population, with 2024 marking the third consecutive year of population decline. Experts warn that this downward trend is likely to continue, prompting authorities to intensify measures to encourage family formation.
In recent years, the government has rolled out several “fertility-friendly” policies, including personal income tax exemptions on childcare subsidies and the introduction of annual childcare allowances. Educational institutions have also been urged to provide “love education,” aimed at promoting marriage, family life, and fertility awareness.
At the Central Economic Work Conference last month, top officials reaffirmed their commitment to fostering “positive marriage and childbearing attitudes” as part of broader efforts to stabilise birth rates.
China’s demographic challenges are rooted in decades of low fertility, influenced by the one-child policy (1980–2015), rapid urbanisation, and modern economic pressures. High costs of childcare and education, job insecurity, and economic uncertainty have further discouraged many young people from marrying and starting families, contributing to the nation’s demographic slowdown.
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