China Has Come Up With New Taxes To Boost The Country's Birth Rate
17- 3.01.2026, 9:03
- 6,786
Beijing has responded to the demographic decline.
Chinese authorities have changed the tax regime for contraceptives since the beginning of the year, continuing to adjust population policy amid a steady decline in birth rates and a shrinking population.
According to Reuters.
On January 1, China ended an exemption that had exempted contraceptives from taxation for more than 30 years.
Preservatives and birth control pills are now subject to value-added tax at the 13% rate that applies to most consumer goods.
Demographic decline and Beijing's response
The decision comes amid attempts by authorities to reverse negative demographic trends.
The country's population fell for the third year in a row in 2024, and experts warn that this trend will continue in the future.
The falling birth rate remains one of the key problems of the world's second-largest economy.
Financial incentives for families
Last year, authorities exempted childcare subsidies from personal income tax and introduced annual financial aid for families with children.
These measures were part of a set of steps implemented in 2024, including calls for educational institutions to promote "love education" by shaping positive attitudes toward marriage, family and having children.
Position of the country's leadership
In December, at the annual Central Economic Working Conference, top leaders again pledged to promote "positive attitudes toward marriage and childbearing" to stabilize the birth rate.
Causes of the falling birth rate
China's fertility rate has been declining for decades due to the effects of the one-child policy in place from 1980 to 2015, as well as accelerated urbanization.
Additional influences include the high cost of childcare and education, uncertainty in the labor market and slowing economic growth, which has deterred young people's desire to start families.
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