China will apply a 13 percent value added tax (VAT) to contraceptives from 1 January, while exempting childcare, marriage-related services and elderly care, under a wider overhaul of its tax system.
The changes remove exemptions dating back to 1994 and form part of broader demographic measures that also include extended parental leave and financial incentives.
The government is responding to a shrinking and ageing population, with official data showing births fell to 9.54 million in 2024, about half the level of a decade earlier.
The tax applies to items such as condoms and birth control pills, while childcare services will be VAT-free. China’s population has declined for three consecutive years.
Image credit: 东旭 王
