Illustration
Since the implementation of the "one child per family" policy in 1993, strict control over birth rates has been enforced in the country, and contraceptives were exempt from taxation. However, China is now facing a reverse trend.
The country's population has been declining for the third consecutive year, and in 2024, only 9.54 million newborns were registered in China—half the number from ten years ago.
In addition to the tax on contraception, it is planned to exempt services of kindergartens and nurseries, as well as care services for the elderly and disabled, including wedding organization, from VAT. These changes demonstrate a significant shift in the state's demographic policy.
Nevertheless, despite Beijing's efforts to increase birth rates, the high costs of raising children in the country remain a serious barrier. Young people often struggle to find jobs and stability in the labor market, leading them to doubt the feasibility of starting a family.
Experts warn that changes in tax policy are unlikely to yield significant results; however, they may symbolize the government's efforts to change public perception of childbirth. Some also express concern that, amid rising HIV infection rates, the availability of condoms may worsen, leading to undesirable consequences.
