China Imposes 13 Percent VAT on Contraceptive Products

The Chinese government announced that a 13 percent value‑added tax will be applied to contraceptive drugs and devices starting 1 January 2026. The measure is presented as a symbolic effort to boost the country’s declining birth rate.

The tax is introduced through a revision of the VAT law that ends the exemption granted in 1993 when the one‑child policy was enforced. Births fell to 9.54 million in 2024, roughly half of the 18.8 million recorded in 2015 after the policy was relaxed. In parallel, authorities have rolled out cash subsidies, extended paternity leave and stricter abortion guidelines to encourage fertility.

Demographers consider the tax largely symbolic and unlikely to raise fertility directly, but higher contraceptive costs could affect family planning decisions. Raising a child to age 18 costs over CNY 538,000 (about Rp 1.26 billion), making affordability a major concern. Public reaction on platforms such as Weibo also raised fears of increased HIV transmission if access to contraception is reduced.