China Reintroduces 13% VAT on Contraceptives Amidst Declining Birth Rates

• China will reintroduce a 13% VAT on contraceptives from January 1, 2026, ending a 30-year exemption.
• The move aims to boost the country's declining fertility rate, currently at 1.0 children per woman, well below the 2.1 replacement level.
• Experts warn the tax may hinder access to safe birth control for young and low-income citizens, potentially increasing unintended pregnancies and STIs.
• Despite government incentives like childcare payments and extended parental leave, analysts believe the tax is unlikely to significantly raise birth rates.
• Critics argue that economic pressures, high child-rearing costs, and social changes are the primary barriers, not contraceptive access.

Why It Matters: China's reintroduction of VAT on contraceptives may backfire, hindering public health without boosting birth rates.