China Birth Rate: The population of China is continuously decreasing. After the ‘one child policy’ that ran from 1980 to 2015, the country is now facing the problem of low birth rate. In this regard, the Chinese government has taken a new step.
In view of the continuously decreasing population, China has abolished the three decade old tax exemption on contraceptive medicines and devices from January 1, 2026. Now 13% Value Added Tax (VAT) will be imposed on condoms and contraceptive pills. The move comes at a time when Beijing is struggling to increase the birth rate in the world’s second-largest economy.
The change is part of China’s new value-added tax law, passed in 2024. Earlier these products were exempted from tax since 1993, when the government was emphasizing on population control. Now the policy has reversed, the government wants to encourage the birth rate.
This step has been taken towards encouraging the birth rate. Apart from this, the government has exempted child care subsidy from personal income tax. Love education is being promoted in colleges by introducing an annual child care subsidy, so that marriage, love and family are shown in a positive manner.
It is believed that this step will not have much impact on the birth rate, because the cost of producing and raising a child is very high. Some people have expressed concern that it could increase the risk of unwanted pregnancy or sexually transmitted diseases.
China’s population is expected to decline for the third consecutive year in 2024, and experts have warned that the decline will continue. China’s birth rate has reached a record low. Due to urbanization, expensive education, high cost of child care, job uncertainty and economic recession, youth are hesitant to marry and have children. Despite adopting the policy of two children in 2015 and three children in 2021, births did not increase.