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

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.

  • EndlessNightmare@reddthat.comEnglish
    4·
    3 hours ago

    So you’re saying that I was right to express concerns in the recent post about China covering childbirth expenses, and that it wouldn’t stop there?

    Original comment:

    As long as people who don’t want to have children aren’t pressured. Not everyone is interested in parenting, and that needs to be accepted.

    Well, that didn’t take long. The other post was earlier this week.