China Taxes Condoms 13% to Boost Births, Sparks Debate

• China imposes a 13% VAT on condoms and other contraceptives from January 1, 2026, ending a long-standing tax exemption.
• Dubbed the 'condom tax,' this move is Beijing's latest effort to reverse falling birth rates and slow demographic decline.
• The policy follows the failure of previous one-child and three-child policies to significantly boost births.
• This 'small stick' approach is coupled with 'bigger carrots' like a national childcare subsidy (3,600 yuan/year per child under three) and tax exemptions for childcare benefits.
• Critics warn the tax is symbolic, not practical, and risks increasing unintended pregnancies and sexually transmitted infections, especially for poorer consumers.

Why It Matters: China taxes contraceptives to boost births, but critics fear negative public health impacts and limited effectiveness.