Summary
China has ended a long-standing tax break on contraceptives like condoms and birth control pills starting January 1. This change is aimed at addressing China's declining birthrate. The country is trying to encourage more births as its population has been shrinking.
Key Facts
- China removed a tax exemption on contraceptives that started in 1994.
- Contraceptives now have a 13% value-added tax.
- The decision is part of efforts to reverse China's declining birthrate.
- In 2024, China recorded only 9.54 million births, about half the number from a decade ago.
- China's population decline has happened for three consecutive years.
- India surpassed China as the most populous country in 2023.
- Other measures to boost birthrates include raising the birth limit to three children and offering cash incentives for parents.
- China's new tax on contraceptives has been criticized online, with many questioning its effectiveness.
