From 1 January, contraceptives will be subject to a 13% VAT rate – part of a carrot-and-stick approach by the government to increase births
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.
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.
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 revenue.
This is even more stupid. Even if you succeeded in making people have more unprotected sex, if people don’t want it, you’re still gonna have a bad time. The children who are born unwanted aren’t going to have as good of life as those wanted for many reasons. At least 1 child who was born previously got more resources and had better chances. Though both are stupid decisions, I agree. This one even more. And another reason - you hopefully see you’ve made a stupid decision in the past and should have not meddled with organic needs of people in such an extreme way. So then OBVIOUSLY, the solution is to double down, but in the opposite way. /s