China taxes contraceptives by 13% to boost birth rate

People in China will pay a 13 per cent sales tax on contraceptives from January 1, while childcare services will be exempt, as the world’s second-largest economy tries to boost birth rates.

An overhaul of the tax system announced late last year removes many exemptions that were in place since 1994, when China was still enforcing its decades-long one-child rule.

It also exempts marriage-related services and elderly care from value added tax (VAT) – part of a broader effort that includes...