China's taxing condoms to boost birth rates lol

China's government is slapping a 13% VAT on contraceptives, including condoms, starting January next year. This totally scraps the tax exemption they've had for almost 30 years. It looks like they're making a sharp U-turn from birth control policies to procreation policies because their record-low birth rate is threatening economic growth.

Taxing birth control, but tax-free childcare... Talk about carrot and stick!

Chinese authorities decided to tax birth control pills and related devices at 13% under the newly revised VAT law, which were previously tax-exempt since 1993. This is a complete 180 from their past stance of actively encouraging contraception and exempting taxes during the 'one-child policy' era to control population.

On the other hand, they've also rolled out new incentives for soon-to-be parents. The authorities announced VAT exemptions for childcare services from daycare to kindergarten, as well as elderly care, disability support, and marriage-related services. This tax reform plan will take effect starting next January.

Continued...

https://www.leadeconomy.co.kr/news/articleView.html?idxno=5508