China will start taxing condoms and other contraceptives for the first time in three decades, as it searches for ways to lift one of the world’s lowest birth rates.
Under a revised Value-Added Tax (VAT) Law passed at the end of 2024, condoms and oral contraceptives will lose their tax-exempt status and be subject to up to 13 percent VAT starting Jan. 1, 2026.
The change ends an exemption in place since 1993, when the One-child Policy was in full force, and the state promoted widespread use of birth control.
At the same time, matchmaking agencies have been added to the tax‑exempt list.
The revised law also introduces new tax breaks for services the government says support family formation: childcare from nurseries to kindergartens, elder-care institutions, disability services, and marriage-related businesses….
China to Tax Condoms and Contraceptives as It Grapples With Plunging Birth Rate
