China is considering a significant shift in its population policy, with a proposed value-added tax (VAT) on contraceptive drugs and products. This marks the first time in over three decades that such items will not be tax-exempt. The new measure, set to take effect from January 1st, will impose the standard 13% VAT on contraceptives, including condoms, which has ignited a fervent debate across Chinese social media. While state media has remained largely silent on the issue, citizens are expressing their views, with many questioning the effectiveness of the tax in addressing the nation’s declining birth rate, arguing that the cost of raising children far outweighs the increased price of contraception. This move comes as China grapples with a shrinking population, a stark contrast to its past policies that enforced a strict one-child limit for decades. The government has since relaxed these restrictions, first to two children in 2015 and then to three in 2021, aiming to reverse the demographic downturn. However, the widespread availability and promotion of contraception have persisted until now. Experts are voicing concerns that the higher cost of birth control could lead to an increase in unintended pregnancies and a rise in sexually transmitted infections. The birth rate has seen a significant decline, with only 9.5 million babies born in 2024, compared to 14.7 million in 2019. This demographic shift has led to India surpassing China as the world’s most populous nation.
