The sharp decline in birth rates in China has forced the government to take new steps. The Beijing authorities have announced that a 13 percent value-added tax will be applied to birth control products, which have been exempt from taxes for 32 years.
Medianews.az reports that the decision will come into effect on January 1, 2026.
According to the information, the tax applied to products such as condoms, birth control pills, and intrauterine devices cancels the concession that has been in force since 1993. Officials justify this step with declining birth rates, rapidly aging population, and a decrease in the workforce.
Based on data from the National Bureau of Statistics, 9.5 million children were born in China in 2024. This is approximately a 35 percent decrease compared to 2019. Against the backdrop of declining births, in 2023 China lost its status as the most populous country in the world to India.
It should be noted that China relaxed its long-standing “one-child” policy starting from 2015, first allowing two children, and later three. The new tax decision has caused criticism because it contradicts the previous stimulative policies.
At the same time, the government plans to expand social support measures to increase the birth rate. For instance, maternity leave will be extended to 158 days, and paternity leave to 30 days. Starting from 2025, an annual state support of 500 dollars will be given for children born after that year.
Medianews.az
