China has decided to tax condoms and make childcare cheaper — a move that has triggered debate, jokes and concern, as Beijing struggles to reverse a historic fall in birth rates.
Contraceptives such as condoms, birth control pills and devices now attract a 13 percent value added tax. At the same time, childcare services will be exempt from VAT. Marriage-related services and elderly care have also been brought under tax exemptions. The changes are part of a broader overhaul of China’s tax system, the first major revamp since 1994, when the country was still enforcing its one-child policy.
The government’s goal is clear: encourage young people to marry and have more children. China’s population has declined for three consecutive years. In 2024, only 9.54 million babies were born — roughly half the number recorded a decade ago, when family size restrictions were gradually relaxed.
However, taxing contraception has drawn sharp reactions online. Many Chinese netizens mocked the idea that higher condom prices would push couples into parenthood. Some joked about stocking up before prices rise, while others pointed out that the cost of raising a child far outweighs any increase in contraceptive prices.
Experts largely agree. China is among the most expensive countries in which to raise a child, according to a 2024 study by the YuWa Population Research Institute. Education costs, intense academic competition, and the difficulty of balancing work and parenting — especially for women — are major deterrents. The ongoing property crisis and economic slowdown have also made young families more cautious about long-term commitments.
For some, the price hike may not matter. “A box of condoms costing a few yuan more won’t change decisions about having children,” says Daniel Luo, a 36-year-old father from Henan province. But others worry about unintended consequences. Making contraception more expensive could increase the risk of unwanted pregnancies and health issues, particularly among students and low-income groups.
Demographers say the move is largely symbolic. Beijing may also be looking to expand its tax base as government finances come under strain. VAT already accounts for nearly 40 percent of China’s total tax revenue.
China’s experience mirrors challenges faced by Japan, South Korea and many Western nations: falling marriage rates, rising stress, and changing social attitudes. Without addressing these deeper issues, critics argue, tax tweaks alone are unlikely to spark a baby boom.