China’s Contraceptive Tax and Childcare Cost Reduction: Policies to Address Plummeting Birth Rates

China has introduced a novel strategy involving a tax on condoms and contraceptive pills paired with reduced childcare expenses to counter its declining birth rate. The country’s move follows years of enforcing the one-child policy and aims to stimulate childbirth rates amid a population decrease. The tax imposition stands at 13 percent for condoms and contraceptive pills. This alteration is part of a broader tax system reorganization announced recently that eliminates exemptions dating back to 1994, during the era when the one-child rule took effect. To encourage family growth, China has revised its tax laws, exempting childcare subsidies from personal…