Country's bold move: Condoms and pills hit with heavy taxes, aiming to boost birth rates

Beijing (The Uttam Hindu): China, worried about its declining population and falling fertility rate in the world, has now taken a strange step. The Chinese government is now encouraging its youth and couples to have physical relations without condoms and contraceptive pills. So that people reduce the use of contraceptives, China has imposed heavy taxes on condoms and contraceptive pills from this month (January). The government's intention is that due to these products being expensive, people will reduce their use, which will lead to an increase in the birth rate.

13% VAT came into effect from January 1

According to a report by The Conversation, China has joined the list of Asian countries struggling with extremely low fertility rates. China aims to double its current fertility rate (1.0 children per woman). As part of this strategy, Beijing has imposed a 13 percent VAT (value-added tax) on condoms, contraceptive pills, and other products from January 1. In contrast, childcare and matrimonial services have been kept tax-free to encourage people to get pregnant.

Attempts to stop family planning through inflation

Contraceptive products have become significantly more expensive in China following a new tax that came into effect in January. After the tax, the price of a pack of condoms has risen to approximately 50 yuan (about US$7 or 630 Indian rupees). Similarly, the average price of a month's worth of birth control pills has now reached approximately 130 yuan (US$19 or 1150 Indian rupees). Experts believe that the 13 percent tax on contraceptives is a symbolic and strong message from the government.

Cash assistance for having children

Not only are taxes being raised, the Chinese government is also providing financial assistance to families who have children. Last year, China allocated 90 billion yuan (about US$12.7 billion) to the National Child Care Program. Under this program, families receive a one-time payment of approximately 3,600 yuan (over US$500) for each child aged three or younger.

China trapped in the web of its own old policies

China's old policies are responsible for its falling birth rate. In the 1960s, the fertility rate there was more than 7.0, which decreased to 1.5 in 2015 due to the strict implementation of the one-child policy. Seeing the declining population, the government implemented the 'two-child policy' in 2015 and the 'three-child policy' in May 2021. It was hoped that this would lead to a 'baby boom', but the fertility rate continued to decline. In the year 2021, it was 1.2, which has fallen to 1.0 in 2024. Now China is trying to improve it through measures like social changes and taxes.