Key Highlights
- China introduced a 13% sales tax on condoms and contraceptives effective January 1, 2026.
- The tax overhaul aims to address declining birth rates and an aging population.
- Childcare services and marriage-related services are exempt from the new VAT.
- This policy shift follows a period of population decline for three consecutive years.
- The changes are part of broader efforts to encourage young couples to marry and have children.
