China to impose tax on condoms for the first time in 30 years – the reason will shock you

China has decided to slap tax on condoms and other contraceptive products. For the past 30 years, these items were completely tax-free, but now the real reason behind this sudden tax hike will leave you stunned

China has taken a major decision. According to Reuters and Chinese finance ministry announcements, for the first time in 30 years, China is going to impose a 13% Value Added Tax (VAT) on condoms and other contraceptive products starting from 2026.

These items had been fully exempt from tax since 1993 because, at that time, China’s strict one-child policy was in force and the government wanted to aggressively promote birth control and family planning.

But now the policy has completely reversed.

**Why is China suddenly taxing condoms?**
The Chinese government is removing tax exemptions on contraceptives because it now desperately wants to increase the country’s birth rate. The infamous one-child policy was scrapped nearly a decade ago, and in the last three years, China’s population has been shrinking continuously. In 2024, only 9.54 million babies were born – an all-time low.

To encourage more births, China has already rolled out cash incentives, expanded childcare options, extended maternity and paternity leave, and even issued guidelines to reduce “non-medically necessary” abortions.

**What will remain tax-free?**
At the same time, from January 2026, services related to childcare and family welfare will become completely VAT-exempt. This includes:
– Nurseries and kindergartens
– Elderly care institutions
– Services for the disabled
– Marriage-related services

**Will the condom tax actually reduce usage?**
Demography expert He Yafu says the removal of the VAT exemption is largely symbolic and is not expected to have a big real-world impact on condom usage or prices. Its main purpose is to send a strong social signal: China wants more babies and fewer abortions.

**Public health concerns**
However, the decision has also raised worries. China is one of the few countries where new HIV infections are still rising rapidly (while globally they are falling). Most new cases are linked to unprotected sex. Health activists fear that any increase in condom prices, even a small one, could worsen the HIV situation.

After decades of forcing people to have fewer children, China is now using every possible policy tool – including taxing condoms – to persuade its young people to have more babies and reverse the population decline.