Condom tax and cheaper childcare: China's plan to boost birth rates

BBC News - WorldCenterEN 4 min read 100% complete January 1, 2026 at 12:07 AM

AI Summary

long article 4 min

To combat declining birth rates, China will implement a 13% sales tax on contraceptives starting January 1st, while exempting childcare services from value-added tax. This tax overhaul, part of a broader effort including extended parental leave and cash handouts, aims to encourage marriage and childbirth amid an aging population and economic challenges. Official figures show births have halved in the last decade, with only 9.54 million babies born in 2024. The new tax on contraceptives, including condoms and birth control, has raised concerns about unwanted pregnancies and HIV rates, despite the government's efforts to reduce the financial burden of raising children. Many Chinese citizens feel that the cost of raising a child far outweighs the cost of contraceptives.

Key Entities & Roles

Key Player Opposition Context

Henan 40% Osmond Chia 50% Yan Chen 50% YuWa Population Research Institute 60% Daniel Luo 60% Beijing 70% China ×695%

Keywords

birth rates 100% condom tax 90% childcare services 80% ageing population 70% tax system 70% contraceptives 60% economic slowdown 60% one-child rule 50% parental leave 50% value added tax 40%