China removes tax break on condoms to encourage births

China is ending a 33-year tax exemption on condoms and other contraceptives starting January 1, 2026. This move is part of a broader effort to boost the country's declining birth rate. The 13% value-added tax will now apply to contraceptives, which were previously exempt. This policy shift comes as China struggles with falling birth rates despite relaxing its population control policies. Experts question the effectiveness of this tax change in encouraging more births, suggesting it may not significantly impact young people's decisions to have children.