Amid historically low birth rates and economic pressures from its aging population, China will eliminate a decades-old tax exemption on contraceptives. China aims to impose a unique strategy to address a falling birth rate that threatens its long-term stability. As of January 1, 2026, the government will levy a 13 percent value-added tax (VAT) on various contraceptives, including condoms. The decision amends the Value Added Tax Law, which in 1993 exempted birth control products from taxation. At the time, the measure was part of China’s effort to contain its accelerating population growth. However, that policy has become a hindrance to the world’s second-largest economy, whose growth and stability are under pressure due to its markedly aging population and declining birth rate. The National Bureau of Statistics reported that in 2024 China recorded a slight uptick with the birth of 9.54 million babies, around 520,000 more than in 2023. However, the birth rate per 1,000 stood at 6.77 last year, matching the second-lowest level observed in the history of the People’s Republic of China, in 2022. …