China taxes contraception in bid to boost birth rate

China has abolished a long-standing tax exemption on contraceptives and is introducing a 13 per cent VAT on condoms and hormonal pills from 1 January. The move is part of a broader effort by Beijing to stem a fertility decline that has plagued the country for the third year in a row.

The government has also exempted childcare allowances from income tax and introduced financial incentives to support families.

However, the high cost of living, uncertainty in the labour market and the reverberating impact of the one-child policy are preventing many young Chinese from deciding to start a family.

The authorities are therefore increasingly resorting to symbolic gestures, such as teaching 'love education' in universities. Beijing has repeatedly declared that it supports positive attitudes towards marriage and childbirth, but experts say systemic changes are also needed.

(reuters, pir)