Let People Make New People: Condoms Will Become More Expensive in China 0 8

Starting from January 1, 2026, a value-added tax law will come into effect in China, replacing the temporary provision that has been in place since 1993. One of the innovations of the law is the exclusion of contraceptives from the list of goods exempt from VAT.

The VAT rate on goods in China is 13%.

"This is part of a broader revision of state policy: a rapidly aging country is shifting from birth control to encouraging larger families. The population has been declining for three consecutive years: in 2024, only 9.54 million children were born – half as many as nearly a decade ago when the 'one-child' policy was abolished," Bloomberg writes.

Shi Zhengwen, director of the Center for Tax Law Research at the Chinese University of Political Science and Law, also noted in a comment to Chinese media that, as the country's demographic policy has undergone significant changes, contraceptive drugs and devices should be taxed on the same terms as other ordinary medications and medical products.

For nearly four decades, China implemented the 'One Family – One Child' policy. Citizens were allowed to have no more than one child (for rural residents – no more than two) to reduce the strain on the country's resources.

In 2013, amid a sharp decline in the working-age population, China allowed up to two children if one of the parents was an only child, and in 2016, the 'One Family – One Child' practice was completely abolished.