- China imposes a 13% tax on condoms and contraceptives from January 2026
- Child care and matchmaking services remain duty-free to encourage fertility
- Previous efforts include a $12.7 billion child care program with family payments
When China introduced its one-child policy many many moons ago, little did know it was digging its own grave. Once the most populous country, China is now suffering with one of the world's most stunted fertility rates. To boost its 1 child per woman by at least twice, the country has come up with a crafty potential solution — taxes on condoms, birth control pills and other contraceptives.
On the contrary, services that may induce a more fertile environment such as child care and matchmaking remain duty-free. Even as condoms and other contraceptives have been slapped on with a 13% value-added tax, as of Jan. 1, 2026, the question remains how effective this will prove in lifting up fertility rates.
The move came after multiple unsuccessful efforts made by China's government to fix the reverse the anaemic replacement fertility rates to the required 2.1, such as allocation of 90 billion yuan or $12.7 billion for a national child care programme giving families a one-off payment of around 3,600 yuan over $500 for every child age three or under.
A report by non-profit news organisation 'the Conversation' terms the tax as 'symbolic', stating that just like other previous attempts the tax will most likely not be fruitful for the cause.
"A packet of condoms costs about 50 yuan or $7), and a month supply of birth control pills averages around 130 yuan $19. The new tax is not at all a major expense, adding just a few dollars a month," the report highlights, comparing it with the cost of raising a child in China which comes down to approximately 538,000 yuan or over $77,000 till the age of 18. This average too varies from location to location and is anticipated to be much higher in urban areas.
The report goes on to cite real-life testimony of a father who told BBC that "a box of condoms might cost an extra five yuan, maybe 10, at most 20. Over a year, that's just a few hundred yuan, completely affordable.”
Other countries such as Singapore, South Korea have also tried to adopt pronatalist policies to address low fertility, and even taken the help of the private sector to market the idea of having children, but these measures are "rarely effective", according to the report.
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