Chinese authorities have imposed a 13 per cent tax on condoms, contraceptive drugs and devices in a bid to boost the dwindling birth rate in the country.
This move, which takes effect from January 1, ended three decades of tax exemption for condoms, contraceptive drugs and devices.
The world’s second-largest economy has struggled with a declining birth rate in recent years, as China has seen its population decrease for three straight years since 2024.
After strict enforcement of the one-child policy from 1980 to 2015, Chinese authorities are making concerted efforts to increase the birth rate to sustain the country’s robust economy.
In a bid to boost child birth, the Chinese government incentivises childbirth, allocating 90 billion yuan ($12.7 billion) for a childcare subsidy programme and also allocating 3,600 yuan annually for every child under the age of three in 2025.
The Chinese government had also announced that healthcare insurance would cover childbirth expenses.