China Imposes 13% VAT on Contraceptives to Combat Declining Birth Rates: What You Need to Know

Dec 05, 2025 03:37 pm CST

China has implemented a 13% VAT on contraceptives for the first time since 1993, reversing decades of tax exemption as part of efforts to boost declining birth rates. Despite abandoning its one-child policy in 2016 and allowing up to three children per family, China faces continuing population decline with births halving since 2016. The government is also offering subsidies for young children as high childrearing costs deter many couples from having children.