Beijing: China will begin taxing condoms and birth control pills in an effort to increase its birth rate for the first time in three decades. This policy shift comes after the abolition of the one-child policy a decade ago, which failed to address the challenges posed by China's aging population.
According to Thai News Agency, contraceptive products in China will be subject to a 13% value-added tax, the same rate applied to most consumer goods, starting January 1, 2026. This marks the end of more than three decades of tax exemption under the "one-child policy," which had been in place since 1980. The Chinese government initially justified the policy to prevent rapid population growth that could undermine poverty alleviation efforts. However, with birth rates declining and the population aging, there are growing concerns that China may face the prospect of becoming an "old before rich" society. This concern led to the abolition of the one-child policy in 2015.
China's population saw its first decline in 60 years in 2022 and is projected to continue decreasing until 2024. Currently, individuals aged 60 and above constitute over one-fifth of the 1.4 billion population, with United Nations projections indicating that this demographic could make up half the population by 2090. In response, the government has implemented various measures to encourage family building and childbirth. President Xi Jinping has emphasized that population security and the development of a high-quality human population are national priorities.
Many in China argue that the country's birth rate policy must also tackle key issues such as high youth unemployment, elevated childcare costs, and the burden of child-rearing falling predominantly on women. Additionally, the legacy of the one-child policy has resulted in a generation of Chinese citizens who lack siblings but are responsible for caring for two elderly parents without social welfare support, complicating their ability to consider having children of their own.