China's population policy overhauls

To strictly combat damaging social as well  as  economic consequences of a rapidly ageing and declining population, China has changed its policy objectives and now seeks to grow both its shrinking population and the birth rate. 

This indeed represents a dramatic departure from the country's decades-long one-child policy, which actually restrained population growth but deepened the intricacies of the present demographic issues. That comes as a positive reason to reconsider its  stale policy regarding the population. 

In this regard, what has been lambasted is the extra VAT imposed on condoms and contraceptives. Thus, a straight blow has been dealt to the three-decade exemption. 

This hints at part of a more comprehensive overhaul of its VAT system, which supplies nearly 40% of national tax revenue.

The condom tax has sparked mockery that officials are going to extreme lengths just to make us have children. Even one mother hastens to call the move a bit ruthless yet laughable when compared to the forced abortions during the family planning era. 

Further, experts conclude that the tax on contraceptives is unlikely to increase the fertility rate. If the contraception becomes harder to access, the fallout will land the heaviest upon women, mainly those with fewer needful resources.

It stands quite as a new addition to China's population policy, with the freshly  carved model being carried as a transformed style across every fabric & finish. 

This year, it earmarked $12.7 billion for a national childcare subsidy while extending health insurance to cover all childbirth costs.

The new VAT law goes further, offering tax breaks for childcare and matchmaking-style marriage introduction services.

The birth rate ticked slightly in 2024 to 6.77 births per 1,000 people, but remains far below the past levels reportedly.

China has undergone a shift regarding its population increase over the past few years. From the New Year, it has decided to attract citizens to have more babies. It will even go to the extent of taxing birth control, reportedly.

Clearly, it plans to slap a 13% value-added tax on even condoms and other reliable contraceptives in the new year, thereby ending a three-decade exemption. This hints at part of a broader overhaul of its VAT system, which supplies nearly 40% of the national tax revenue.