•Condoms and contraceptives
China has imposed a 13 per cent value-added tax on condoms, contraceptive drugs and devices as part of renewed efforts to reverse the country’s declining birth rate.
The policy, which took effect from yesterday, Thursday, January 1, 2026, brings to an end more than three decades of tax exemptions on contraceptive products, reports AFP.
The world’s second-largest economy has recorded a steady population decline, with China’s population shrinking for the third consecutive year since 2024.
The trend has raised concerns about the long-term impact on the country’s labour force and economic growth.
Following decades of strict population control under the one-child policy, which was enforced from 1980 to 2015, Chinese authorities have shifted focus to encouraging childbirth and supporting young families.
As part of these measures, the government has introduced wide-ranging incentives, including a 90 billion yuan (about $12.7 billion) childcare subsidy programme.
In addition, families are to receive an annual subsidy of 3,600 yuan for each child under the age of three in 2025.
The Chinese government has also announced that national health insurance schemes will now cover childbirth-related expenses, further easing the financial burden on prospective parents.
