Summary
China will charge a 13% sales tax on contraceptives like condoms starting January 1, while childcare services will become exempt from taxes. The government aims to boost birth rates by encouraging people to have more children, as the country's population has been shrinking. However, some people worry that making contraception more expensive could lead to more unwanted pregnancies and health issues.
Key Facts
- China will impose a 13% sales tax on contraceptives from January 1.
- Childcare services, marriage-related services, and elderly care will not be taxed.
- The change is part of China's plan to increase birth rates and support families.
- China's population has been shrinking for three years, with fewer babies born in recent years.
- In 2024, China's birth count was about half of what it was a decade ago.
- There are concerns that more expensive contraceptives could lead to more unwanted pregnancies and HIV cases.
- The YuWa Population Research Institute reported that China is one of the costliest countries to raise a child.
- Observers are divided on whether taxing contraceptives will effectively increase birth rates.
