On January 17, 2023, a nurse is seen taking care of a newborn at a hospital in Fuyang, Anhui Province in eastern China. AFP=Yonhap News.
China is taking a drastic measure to address the low birthrate crisis by imposing taxes on condoms and other contraceptives, including contraceptive pills.
According to a report by Bloomberg on the 2nd (local time), the National People’s Congress of China recently revised the value-added tax law to impose a 13% value-added tax on contraceptives, including condoms, which had previously been exempt from tax, starting in January next year.
The Chinese authorities did not announce this separately; it seems the taxation plan became known as items that were previously tax-exempt have been removed from the list.
China, which had the world’s largest population, enforced the “one-child policy per household” for 35 years until 2015 to limit childbirth. The value-added tax on contraceptive devices had been exempt since 1993 when the strict one-child policy was in place.
While taxes will be imposed on contraceptive pills and devices, it is expected that tax exemptions will be implemented next year for services related to child care, elderly care, disability, and marriage.
China’s population saw approximately 9.54 million births last year, marking a decrease for the third consecutive year, roughly half of the number 10 years ago (approximately 18.8 million).
Chinese authorities have previously introduced various birth encouragement policies, such as offering cash childcare allowances and extending maternity and parental leave.
Meanwhile, there are concerns about the public health implications of this measure.
Bloomberg reported that this move comes at a time when HIV infections are dropping globally but are rapidly increasing in China. According to the Chinese Center for Disease Control and Prevention, HIV and AIDS cases rose from 0.37 per 100,000 people in 2002 to 8.41 per 100,000 in 2021.
Chinese netizens have also pointed out the potential for unintended pregnancies and the spread of sexually transmitted diseases due to increased condom prices from taxation.