China to Tax Condoms

China has announced it will begin taxing condoms as part of changes to its tax system, as the country continues to grapple with falling birth rates and a rapidly ageing population.

Failing birth rates and demographic decline have already begun to place pressure on China’s long-term productivity and economic growth, with fewer young people entering the workforce and more citizens moving into retirement. In response, authorities have been rolling out a range of measures aimed at encouraging higher birth rates.

Under the new policy, condoms and other contraceptive products will be subject to a 13 per cent value-added tax, ending decades-long tax exemptions that were introduced during the era of strict population control policies.

The move has sparked debate online and among health experts, with critics questioning whether taxing contraceptives will have any meaningful impact on people’s decisions to have children. Others have raised concerns about access to affordable contraception and potential public health implications.

China has in recent years shifted away from its former one-child policy, introducing incentives such as childcare subsidies, tax deductions, and family support measures in an effort to slow population decline.

Despite these efforts, analysts say the high cost of living, housing pressures, and changing social attitudes remain the main factors behind China’s declining birth rate, rather than access to contraceptives.