China Reintroduces 13% Tax on Contraceptives Amid Declining Birth Rates

China has reintroduced a 13% value-added tax on condoms, birth control pills, and other contraceptives starting January 1, 2026, ending a decades-long exemption. This move aims to address the country's declining fertility rate, currently around 1.0 children per woman, well below the 2.1 replacement level. Experts widely view the tax as largely symbolic and unlikely to boost birth rates, noting that high child-rearing costs and social factors are more significant barriers. Meanwhile, the government has expanded family support programs, including childcare subsidies and parental leave, to encourage higher fertility.