&imwidth=800&imheight=600&format=webp&quality=medium "Tax on condoms? Why is China imposing VAT on contraceptives, and how RISKY is it")
China is going to impose a value-added tax (VAT) on contraceptive drugs and products - first time in 30 years. As per the revised law, consumers will now have to pay a 13 per cent tax on these items that were VAT-exempt since 1993. The country is currently dealing with plunging birth rates, and the move is to tackle the same problem. These items were VAT-exempt since China enforced a one-child policy, which has since been changed, and strongly encouraged birth control over the past three decades.
India took over as the world's most populated country after the death rate in China surpassed the birth rate in 2023. As per the changed law, the tax will be applicable from January 1, 2026. China is shifting from reducing birth rates to encouraging people to have more kids.
The population status of China
In the last three years, China's population has declined, with 9.54 million births recorded in 2024, which is roughly half of the 18.8 million births registered almost 10 years ago.
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A risk to public health?
Yes, there is risk. An expert, quoted by AP, said, “Higher prices may reduce access to contraceptives among economically disadvantaged populations, potentially leading to increases in unintended pregnancies and sexually transmitted infections. Those outcomes could, in turn, lead to more abortions and higher health-care costs.”
