Bloomberg has learned about the introduction of a tax on contraceptives in China in order to increase the birth rate

For the first time in 30 years, China is introducing VAT on contraceptives and condoms in order to stop the decline in the birth rate in the country, which threatens to slow down economic growth and development of the state. This was reported by Bloomberg on December 2.

It is noted that the authorities decided to review the VAT Law, according to which condoms and contraceptives were exempt from its payment in 1993, and intends to introduce a tax on these products in the amount of 13%.

At the same time, lawmakers propose to exempt childcare services, including nurseries and kindergartens, from taxation.

The article says that these changes reflect a broader turn in China's policy, which is shifting from birth control to encouraging people to have a large number of children.

However, it is pointed out that Beijing faces several obstacles. China is one of the most expensive countries to raise children in.

Raising a child under the age of 18 costs more than about 538,000 yuan ($76,000), and many young adults are rejecting such costs amid a slowing economy and an unstable labor market.

Earlier, the media wrote that the transition to a new fertility policy in China is primarily aimed at overcoming the crisis situation with the accelerating aging of the population and is unlikely to help solve economic problems.

On January 11, Taiwan recorded a record decline in the birth rate in 2024. It is noted that last year Taiwan also recorded the lowest number of newborns in its history. In general, this indicator has been falling since 2016.

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