Starting January 1, China will implement a 13% sales tax on contraceptives, while exempting childcare services from VAT, in an effort to boost its declining birth rates.

• China's population has shrunk for three consecutive years, with only 9.54 million babies born in 2024.
• The YuWa Population Research Institute in Beijing reported in 2024 that China is among the most expensive countries to raise a child.
• Demographer Yi Fuxian from the University of Wisconsin-Madison believes the tax hike on condoms is merely a way for Beijing to collect taxes amid an economic slump.