(TibetanReview.net, Dec04’25) – Running out of viable options to address its demographic crisis, China has decided to impose a 13% Value-Added Tax (VAT) on condoms and other contraceptive products only to be asked, “If you can’t afford a taxed contraceptive, can you afford to raise a child?”
Fighting a so far losing battle to halt a steep decline in births, China has ended a three-decade tax exemption on such products, reflecting a shift in policy from restricting population growth to encouraging it, even as rising costs challenge efforts to boost fertility.
China’s strict birth-control regime—most famously the one-child policy—lasted for about 35 years since being imposed in 1979, after the population had nearly doubled between 1949 and 1976. The measures it carried out to implement this policy were nothing short of draconian, involving the use of both physical and economic coercions. The state enforced widespread use of birth control implants, pills and condoms, while abortions and sterilisations were routinely carried out. Those who still gave “illegal” births suffered pauperising fines, loss of job and other opportunities, with the children remaining unregistered.
As a result, China’s population continued to declined. It has contracted for three consecutive years and has now reached an alarming level. Demographers warn that if this trend continues, China faces long-term economic challenges from a shrinking labour force that may strain economic growth, while a rapidly growing elderly population increases demand for health care, pensions and long-term support services. This imbalance places pressure on the working-age population, which is already navigating an economy marked by slow growth, real estate instability, and limited wage increases, noted a firstpost.com report Dec 2.
Measures to address the problem so far have included expanding paid maternity and paternity leave, offering direct monetary subsidies to new parents, encouraging local governments to improve childcare infrastructure, promoting the availability of affordable nurseries and preschools, and introduction of guidance intended to reduce abortions that are not considered medically necessary.
However, these efforts face powerful economic headwinds, the report said. It cited a study from the YuWa Population Research Institute in Beijing as estimating that raising a child to age 18 could cost more than 538,000 yuan, or over $76,000. This is said to make parenthood in China one of the most expensive in the world.
And this price tag looms large for young adults in China who are already struggling in a sluggish economy, rising living expenses and an uncertain job market. Besides, many are now said to prioritise personal stability, career advancement and financial independence over marriage or having children.
Given this context, the announcement of the new VAT has quickly become a trending topic on Weibo, China’s most influential microblogging platform. Some have highlighted the potential unintended consequences, especially in light of the recent rise in HIV infections within the country, with cases having increased dramatically between 2002 and 2021, and with the majority of new cases being linked to unprotected sexual contact.
And of course, if you have unprotected sex because you can’t afford the 13% birth-control VAT, how can you afford the enormous cost of raising a child?