Beijing taxes contraceptives in bid to boost birthrate

China removed a three-decade-old tax exemption on contraceptive drugs and condoms from January 1 in new steps to boost low birth rates, reports Reuters. Condoms and contraceptive pills now incur value-added tax of 13%, the standard rate for most consumer goods.

The move comes as Beijing struggles to boost birth rates. China’s population fell for a third consecutive year in 2024 and experts have cautioned the downturn will continue. 

China’s birth rates have been falling for decades as a result of the one-child policy China implemented from 1980 to 2015, and rapid urbanisation.