China introduces ‘condom tax’ as it tries to get people to have more children
What is China’s new ‘condom tax’ and why has it been introduced?
- China will impose a 13% Value-Added Tax (VAT) on contraceptive medicines and devices, including condoms, from January, ending a three-decade exemption.
- This tax change, part of a revised VAT Law, marks a shift from previous policies that promoted birth control, as China grapples with a declining birth rate.
- To encourage family formation, the government is simultaneously removing VAT on childcare providers, elder-care institutions, and marriage-related services.
- China's population has decreased for three consecutive years, with a significant drop in births, leading to various pro-natalist measures from authorities.
- Experts are sceptical the contraception tax will boost birth rates, citing economic and cultural barriers, while the move has sparked online debate, particularly regarding rising HIV infections.