Overview
- Contraceptive drugs and products will no longer be VAT‑exempt from Jan. 1 under China’s revised law, putting items such as condoms under the standard 13% rate.
- The change ends an exemption in place since 1993, a period when the state promoted birth control under strict population limits.
- The announcement trended on Chinese social media with ridicule and concern, as users questioned whether higher prices would influence family decisions.
- Public‑health experts warn higher costs could reduce access for low‑income groups and lead to more unintended pregnancies, sexually transmitted infections, and abortions, though analysts say the tax is unlikely to lift fertility.
- China recorded about 9.5 million births in 2024 as STIs and HIV cases rose, and condoms remain relatively uncommon in China with about 9% of couples using them compared with heavier reliance on IUDs and female sterilization.