China taxes condoms due to a significant drop in the birth rate

China, as the world's second-largest economy, has taken steps to impose a 13% sales tax on contraceptives and exempt childcare services from taxes starting January 1st, as a strategy to boost its rapidly declining birth rate. These new tax reforms have been introduced by removing numerous tax concessions that were in place during the 'one-child policy' era, which was implemented in the country since 1994. Concurrently, authorities have also moved to exempt wedding services and elder care services from Value Added Tax (VAT).

Despite the Beijing government encouraging young people to marry and have children in the face of challenges like an aging population and slowing economic growth, official statistics show that China's population has continuously declined for three consecutive years, with birth rates in 2024 being only half of what they were a decade ago.

However, the imposition of taxes on essential health products like condoms and birth control pills has drawn criticism within society. Many point out that making condoms more expensive will not necessarily encourage people to raise children, and this could lead to an increase in unwanted pregnancies and sexually transmitted diseases.

According to a report released by a research institute in Beijing, China is considered one of the most expensive countries in the world to raise a child. High school fees, a highly competitive educational environment, and the existing difficulties for women to balance work and family life have been identified as the main reasons for this.

Young families are hesitant about their future due to the real estate crisis and economic uncertainty. Some young people say that just as they don't stop traveling even if metro fares increase, they will not stop using contraceptives even if taxes go up.

However, social activists warn that university students facing economic hardship and low-income individuals might be compelled not to take safe measures or engage in risky behaviors due to these price increases, and they believe this could be the most dangerous outcome of this policy.

Some economists point out that this tax reform is not merely a step taken to increase the birth rate, but could also be a strategy to boost government revenue in the face of a collapsing real estate market and a rising national debt burden.

There has also been opposition to the Chinese government's unnecessary interference in people's private lives. Critics say that incidents such as local officials making phone calls to women in some provinces to inquire about their menstrual cycles and plans for having children have damaged the government's image.

It appears that the current young generation, due to intense social and psychological pressure, tends to lead isolated lives and delay marriage rather than build human relationships. Regardless of material progress, the excessive expectations placed upon them have left the younger generation feeling severely exhausted.