At the beginning of the new year, the Chinese government has taken such a decision, which has sparked a new debate. On one hand, the government is looking for ways to deal with the declining population and falling birth rate, while on the other hand, it has surprised people by imposing tax on contraceptive means. A heavy tax on condoms has been implemented in China on January 1, 2026.
People of China will have to pay 13 percent sales tax on contraceptives. Childcare services will be exempted from this. In the new tax system announced late last year, many types of exemptions which were in place since 1994 have been abolished. At that time China was implementing the one-child policy. Under the one child policy, heavy fines were imposed on families having more than one child in China.
Even in China, condoms are available for 40 to 60 yuan.
Talking about prices, condoms are usually available for 40 to 60 yuan, while the price of one month’s contraceptive pills ranges from 50 to 130 yuan. According to the Guardian report, it is estimated that this tax will generate additional income of about 5 billion yuan annually, which is very minor compared to China’s total budget.
This tax is actually part of the new VAT law passed in 2024, through which China wants to modernize and make its tax system more clear. When the VAT system was implemented in 1993, contraceptive methods were kept exempt from tax because at that time China was implementing a strict one-child policy. The government provided birth control for free or at subsidized rates. During the same period, drastic measures like forced abortion, sterilization and denial of identity cards to children beyond the prescribed limit were also seen.
Today the situation is just the opposite. The one-child policy was abolished in 2015, three children were allowed in 2021, and now the same government is trying to promote marriage and children. Under this, parents are being given longer paid leaves, subsidies on childcare, exemption in IVF treatment and tax relief on services like elder care.