Starting January 1, 2026, all contraceptive products — including condoms, birth control pills, patches, and other forms of contraception — will be subject to a 13% VAT.

These goods have been completely exempt from VAT since 1993, during the era of the strict “one-child policy”.

Why is China taxing contraceptives now?

The new tax is part of a broader government effort to combat the ongoing demographic crisis. China’s population has been shrinking for the third consecutive year. In 2024, only 9.54 million babies were born — almost half the number recorded a decade ago.

After abandoning the one-child policy in 2016 and allowing families to have three children in 2021, authorities are now using every possible lever: cash incentives for childbirth, longer maternity leave, and now making contraception more expensive through taxation.

What will change for consumers?

• Prices of condoms and other contraceptives in China are expected to rise by approximately 13%.
• The tax will apply to both imported and domestically produced products.
• The VAT exemption that has been in place since 1993 will be officially cancelled.

Analysts view the price increase as a deliberate economic measure aimed at encouraging higher birth rates, even if it means putting financial pressure on young people who continue to postpone marriage and children.

The new 13% tax on condoms and contraceptives in China will take effect on January 1, 2026.