‎China Begs Citizens to Give Birth, Offers $1,500 Per Child Born; Sets To Increase Tax On Condoms

‎China Beg Citizens to Give Birth, Offers $1,500 Per Child Born; Sets To Increase Tax On Condoms
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‎China is set to impose a value-added tax (VAT) on condoms and other contraceptives for the first time in three decades, as the country tries to boost its birthrate and modernise its tax laws.
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‎From 1 January, condoms and contraceptives will be subject to a 13% VAT rate – a tax from which the goods have been exempt since China introduced nationwide VAT in 1993.
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‎The measure was buried in a VAT law passed in 2024 in an effort to modernise China’s tax regime. VAT accounts for nearly 40% of China’s total tax
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‎After imposing a strict one-child policy for more than 30 years, China has over the past decade been introducing a suite of “carrots” to induce people to have more children in a bid to boost the falling birthrate.
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‎As well as raising the limit on the number of children permitted per couple to three, provinces have been experimenting with offering discounts on IVF treatment and cash subsidies for extra children. Some local governments offer newlyweds extra days of paid leave to encourage people to tie the knot.
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‎The new VAT law also includes a tax break for childcare and “marriage introduction services”.
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‎This year, the government also allocated 90bn yuan ($12.7bn) for its first nationwide childcare subsidy programme, offering 3,600 yuan annually for each child aged under three. And on Saturday it announced plans to expand its national healthcare insurance programme to cover all childbirth related expenses.
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‎But incentives have had little effect. In 2024, the birthrate was 6.77 per 1,000 people, a slight increase on 2023, but still far below historical levels. A rising death rate caused by an ageing population means China’s population has been shrinking for at least three years.
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‎Now there are concerns authorities may be turning to “sticks” to achieve the national policy goal of more babies.
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‎Women in some areas have reported receiving phone calls from local government officers asking about their menstrual cycles and childbearing plans. In December, Chinese media reported that women in a county in south-west China’s Yunnan province were being required to report the date of their last period to the local authorities. The local health bureau said the data collection was necessary to identify pregnant and expectant mothers.
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