China is one of the most expensive countries in which to raise a child. (Photo: Unsplash)
China began 2026 in a rather unusual way, by making contraceptives more expensive, effective January 1. Dubbed ‘condom tax’, the changes that were announced last year and came into effect on Thursday, impose a 13 per cent value-added tax on contraceptives.
The VAT on contraceptives also comes into effect on the 10th anniversary of China’s relaxation of its stringent One-Child policy. And the increase in prices of contraceptives is also aimed at the same goal – to encourage Chinese people to have more children.
From January 1, 2026, there will be a 13 per cent VAT on contraceptives in China. (Photo: Unsplash)
How One-Child policy is hurting China
Between 1980 and 2015, China had a strict One-Child policy to control its rapidly rising population growth. The policy that was enacted under leader Deng Xiaoping penalised families with more than one child by imposing fines, forced sterilisation, and other measures.
While the One-Child policy did help in keeping birth rates under check in the short term, in the long run, China has been left with an aging population.
From 1980 to 2015 China had a strict one-child policy. (Photo: Unsplash)
Why Chinese people are not having more children
Faced with a population crisis of its own making, China ended its One-Child policy effective January 1, 2016, allowing couples to have two children.
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But a sluggish economy and a cost-of-living crisis meant that there were not many in China who were looking forward to raising a second child.
China is one of the most expensive countries in which to raise a child, according to a 2024 report by the YuWa Population Research Institute in Beijing.
Costs are pushed up by school fees in a highly competitive academic environment, and the challenge women have juggling work and parenting, the study said.
China is one of the most expensive countries in which to raise a child. (Photo: Unsplash)
China further relaxed the policy in 2021, allowing couples to have up to three children, but once again it did not help in reducing the population slump.
Official figures show China’s population has shrunk for three consecutive years, with about 9.54 million babies born in 2024.
How China hopes to encourage more child births
The 13 per cent VAT on contraceptives is one of the several measures China is adopting to encourage more child births. Other measures include exempting childcare services from the same tax, and a subsidy of 3,600 yuan (around Rs 45,000) per year for each child under three.
Several local governments have also rolled out measures including subsidised or free education for children.
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China is one of the most expensive countries in which to raise a child. (Photo: Unsplash) 
