China's Efforts To Increase Birth Rates, Condom Prices Are Threatened To Rise

Condom illustration (Photo: Freepik/Freepik)

JAKARTA - The price of condoms and a number of other contraceptives in China is expected to rise from next month, as Beijing's increasingly aggressive government moves to encourage an increase in birth rates.

In an announcement regarding China's Value Added Tax Law (VAT) this week, condoms and contraceptive pills were removed from the list of tax-free goods. This means that these products now have the potential to be taxed up to 13 percent.

This policy ends the contraceptive tax exemption which has been in effect for 33 years, since it was first implemented in the era of the One Child Policy.

Currently, the price of condoms in China costs 0.60 US dollars per fruit, about half of the general retail price in Australia. However, it is not clear how producers and retailers will adjust the price after the tax policy is implemented next year.

A number of experts view this policy as a step back, especially for women, youth, and low-income groups. They warn the policy ignores the issue of gender equality and has the potential to make contraceptives more difficult to access by groups that need it most.

"Contraceptions must remain accessible, especially for high school students and students, as a measure to prevent sexually transmitted infections," senior Mercator Institute for China Studies (MERICS) analyst Daria Impiombato told ABC News.

"Many countries have actually started providing condoms for free, especially for young people. The imposition of taxes risks limiting access and weakening efforts to prevent sexually transmitted diseases," he continued.

A study released in June showed that among residents aged 15 '24 years in mainland China, the number of cases and deaths from sexually transmitted infections including HIV has continued to increase in recent years.

China first exempted condom tax and contraceptive pills in 1993, when birth control policies were still strictly enforced. At that time, the main goal was to suppress population growth by ensuring contraceptives were available cheaply and widely.

Now that logic is turning around. With the birth rate dropping to record lows, the Chinese government has switched from a 'population control' approach to 'fertility promotion'.

Interestingly, contraceptives will lose tax-free status, match-seeking bureaus are included in the list of services exempt from taxes.

Chinese state media has also been increasingly encouraging women to get married and have children since college. According to Impicombato, this impetus has the potential to have an impact on women's education and career paths.

Experts assess that this tax policy is not just an economic adjustment, but rather part of a wider political shift in the way the state views family, marriage, and reproduction.

On Chinese social media, RedNote, a number of users admitted that they were surprised by this policy and started buying more condoms.

"Now it's not just having expensive children, sex is also expensive. It's better to stay single," wrote one user jokingly.

The contraceptive tax is only part of a national effort to increase the birth rate. In July, Beijing launched its first national birth aid package, in the form of an annual allowance of 3,600 yuan or IDR 8.4 million for each child until the age of three years.

State media called this reform a fundamental re-alignment of population strategies.

The move comes amid a three-year decline in China's population, including a 1.39 million decline in 2024.

Impiombato warned that rising condom prices could increase health risks for young people.

"Many people are upset because this policy feels like punishment for those who are single or choose not to have children," he said.

State-owned media also shows the story of students who raise children while studying, complete with a narrative of the social benefits of having children from university.

"This raises the question of how the pressure to get married and become a parent at a young age can affect the achievement of women's education in the future." said Impicambato.