China has ended a three-decade tax exemption on contraceptive drugs and devices, introducing a 13 per cent value-added tax (VAT) on items such as condoms and contraceptive pills, effective from January 1, 2026.

The policy shift is aimed at addressing the country’s declining birth rate, as China’s population fell for the third consecutive year in 2024. Authorities hope the move will complement broader efforts to encourage childbirth, though experts caution that the tax may have limited impact on family-planning decisions amid rising living costs and changing social attitudes.