Current Affairs - International - Discussion

China has withdrawn a long-standing tax exemption on condoms and contraceptive medicines by imposing a 13% value-added tax starting January 1. This policy shift is part of a broader strategy to address the country’s ongoing demographic challenges, as China recorded population decline for the third consecutive year in 2024. Alongside this measure, the government is introducing fertility-supportive initiatives such as tax-free childcare subsidies and public campaigns encouraging marriage. These combined efforts reflect China’s attempt to reverse declining birth rates and mitigate long-term socio-economic impacts of population contraction.