Under new regulations effective from 1/1, condoms and contraceptive pills are now subject to a 13% value-added tax, the standard rate applied to most consumer goods. This marks a significant change, as birth control items have been tax-exempt in China for decades to promote family planning.

Chinese families on a pedestrian street in Harbin, Heilongjiang province, in 2023. Photo: Reuters

This move comes as Beijing struggles to boost its birth rate. China's population has declined for the third consecutive year in 2024, and experts warn this downward trend will continue. The nation faces severe demographic challenges, prompting urgent policy interventions.

In an effort to reverse the demographic decline, China has implemented various pro-birth measures. Since last year, the government has exempted personal income tax on childcare subsidies and introduced annual grants. In 2024, these efforts expanded to include urging universities and colleges to introduce "love education" programs, designed to portray marriage, family, and reproduction in a positive light.

Last month, at the annual Central Economic Work Conference, top national leaders reiterated their commitment to fostering a "positive attitude towards marriage and childbirth" to stabilize the birth rate. This commitment underscores the urgency with which the government is addressing the issue.

China's birth rate has been declining for many decades, a consequence of the one-child policy implemented from 1980 to 2015, coupled with rapid urbanization. This historical policy created a lasting impact on population dynamics.

Beyond historical factors, contemporary challenges also deter young Chinese people from marrying and starting families. High childcare and education costs, along with precarious employment and a slowing economy, contribute to this reluctance.

By Vu Hoang (Reuters)