Overview
- China’s policy took effect on January 1, 2026, ending a three‑decade exemption first introduced in 1994.
- Condoms, birth‑control pills, and other contraceptive devices now face the standard 13% VAT, while childcare, marriage, and eldercare services receive VAT exemptions.
- Beijing is coupling the tax shift with pro‑natal steps such as longer paternity leave and cash bonuses after births fell to 9.54 million in 2024, the third annual population decline.
- Demographers and public‑health specialists call the levy largely symbolic and warn it could raise unintended pregnancy and HIV risks, especially for students and lower‑income users.
- Retailers and consumers reported stockpiling before price increases, press reports described local officials phoning women about menstrual cycles, and analysts note provincial debt and reliance on VAT revenue may limit effective support.