China Will Tax Contraceptives in a Bid to Improve Birth Rates

Amid historically low birth rates and economic pressures from its aging population, China will eliminate a decades-old tax exemption on contraceptives.

China aims to impose a unique strategy to address a falling birth rate that threatens its long-term stability. As of January 1, 2026, the government will levy a 13 percent value-added tax (VAT) on various contraceptives, including condoms.

The decision amends the Value Added Tax Law, which in 1993 exempted birth control products from taxation. At the time,…