
China's plan to boost birth rates with condom tax and cheaper childcare
Key Points:
- Starting January 1, China will impose a 13% sales tax on contraceptives, including condoms and birth control pills, while exempting childcare services and marriage-related services from VAT as part of efforts to boost birth rates amid an aging population and economic slowdown.
- The policy change has sparked concerns about increased unwanted pregnancies and HIV rates, with critics arguing that higher contraceptive costs may lead financially vulnerable groups to take risks, while others see the tax hike as unlikely to influence birth rates significantly.
- China faces significant challenges in raising fertility rates due to high child-rearing costs, intense academic competition, and the difficulty women face balancing work and parenting, compounded by economic uncertainty linked to a property crisis and national debt.
- Observers














