China reimposes taxes on condoms, contraceptive drugs to spur flagging birth rate

China's population fell for a third consecutive year in 2024 and experts have warned the downturn will continue.

A shelf in a store displays several boxes of Durex AiR condoms with holographic packaging and Chinese text.

Condoms and contraceptive pills will now be taxed at the standard rate for most consumer goods in China. Source: Getty / Costfoto / Future Publishing

China has removed a three-decade-old tax exemption on contraceptive drugs and devices in a bid to spur the nation's flagging birth rate.

From 1 January, condoms and contraceptive pills incur a value-added tax of 13 per cent, the standard rate for most consumer goods in the country.

The move comes as China struggles to boost birth rates in the world's second-largest economy.

China's population fell for a third consecutive year in 2024 and experts have cautioned the downturn will continue.

China exempted childcare subsidies from personal income tax and rolled out an annual childcare subsidy last year, following a series of "fertility-friendly" measures in 2024, such as urging colleges and universities to provide "love education" to portray marriage, love, fertility and family in a positive light.
Top leaders again pledged last month at the annual Central Economic Work Conference to promote "positive marriage and childbearing attitudes" to stabilise birth rates.

China's birth rates have been falling for decades as a result of rapid urbanisation and the one-child policy China implemented from 1980 to 2015.

The high cost of child care and education, as well as job uncertainty and a slowing economy, have also discouraged many young Chinese from getting married and starting a family.


For the latest from SBS News, download our app and subscribe to our newsletter.

Share

2 min read

Published

Source: Reuters



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world