China's growth

Condom tax to boost births in China

The Chinese government hopes to boost the country's low birth rate through new tax reforms. The BBC writes on New Year's Day, exactly ten years after the country's controversial one-child policy was scrapped. Starting today, a 13 percent VAT will apply to contraceptives, while childcare will be made VAT-free.

Like many other countries, China has an aging population and in 2024 it decreased for the third year in a row - a worrying sign for the world's second largest economy.

Ya, 34: Is it expensive to have children - government support is not enough

The 34-year-old mother of one, Mi Ya, doubts that China's new tax reforms will encourage more young people to have children. She tells CNN that it is expensive to have children in a big city and that the politicians' attempts are "a drop in the ocean".

- It does not make you want to have children, she tells CNN.

Daniel Luo, 36, has one child and has no plans to have more. The fact that condoms are becoming more expensive makes no difference, and the low birth rate is more likely explained by the fact that today's young people feel more pressure than previous generations, he believes.

- They are better off materially, but the demands are much higher, he tells the BBC.

Ten years after the country's controversial one-child policy was scrapped, the country's population is shrinking. On New Year's Day, VAT will be introduced on contraceptives, while childcare will be VAT-free and parental leave will be extended.