Starting in 2026, China will impose a 13% value-added tax (VAT) on contraceptives and related drugs, which have been exempt from tax for over 30 years. The new measure has sparked heated discussion online, with many netizens believing that the authorities aim to boost the birth rate. Others joked, “Then just don’t (have sex),” and asked, “Which ‘expert’ came up with this idea?”
According to a Lightning News report, Article 15 of the ‘Interim VAT Regulations’ previously provided for exemption of contraceptives and related drugs from VAT. However, the ‘VAT Law’ in Article 24, which lists VAT-exempt items, no longer includes this provision.
Starting January 1 next year, sales of contraceptives will follow VAT regulations, requiring issuance of the appropriate VAT special or ordinary invoices.
The report notes that cancelling the VAT exemption policy will have a direct impact on the production and sales companies of contraceptives and related drugs: companies will need to reassess their cost structures, adjust pricing strategies, and may face intensified market competition. With the imposition of VAT, market prices for contraceptives may rise, increasing costs for consumers.
Many netizens have commented on the new policy, saying, “Rushing forward to promote childbirth,” “Might as well make it so that only married couples can purchase,” “Another move to drive up birth rates,” “Birth rate boosting combo,” “They still haven’t solved the real issues,” and “Is it possible this may reduce the frequency of sexual activity?”