Beijing ended a 30-year tax exemption for condoms and other contraceptives, as Chinese officials attempt to boost the country’s flagging birthrate.
China’s rapidly aging population declined for a third straight year in 2024, a trend that analysts expect to continue despite a new annual child care subsidy unveiled alongside other “fertility-friendly” policies.
The tax law revision exempts child care, elder care, and marriage-related services. China is one of the most expensive countries for raising children, a Beijing research institute found, a trend exacerbated by high unemployment among young adults.
Some experts said the tax could increase STIs or provoke a backlash: One mother told The Associated Press that she planned to “lead the way in abstinence.”
