From 1 January, contraceptives will be subject to a 13% VAT rate – part of a carrot-and-stick approach by the government to increase births

From 1 January, contraceptives will be subject to a 13% VAT rate – part of a carrot-and-stick approach by the government to increase births

China is set to impose a value-added tax (VAT) on condoms and other contraceptives for the first time in three decades, as the country tries to boost its birthrate and modernise its tax laws.

From 1 January, condoms and contraceptives will be subject to a 13% VAT rate – a tax from which the goods have been exempt since China introduced nationwide VAT in 1993.

The measure was buried in a VAT law passed in 2024 in an effort to modernise China’s tax regime. VAT accounts for nearly 40% of China’s total tax revenue.

  • CookieOfFortune@lemmy.worldEnglish
    1·
    11 hours ago

    I think then it would be a good question to ask why families with 1 or 2 kids why they don’t have more.

    I’d say the main reasons would be:

    1. Money: Even the most child friendly countries only cover a fraction of the cost of raising a child. As far as I’m aware, they might cover daycare, but that still leaves a ton of chores. And again, the standard might be you want to have a room per child, plus a guest room.
    2. Opportunity Cost: Taking leave will pause your career. Taking two years off in your 20s can really delay career growth, again leading to money issues down the line.
    3. Higher standards for marriage and stability: This might not be directly related to money, but maybe we can blame capitalism ruining everything including dating apps.

    So governments might be able to move the needle a bit with these families by providing extra support.

    • ExLisper@lemmy.curiana.netEnglish
      1·
      5 hours ago

      Makes sense. I guess that’s why the poorest people have the least children.

      Oh, wait:

      That’s why I was asking for a source. Your theories have no backing in reality. The truth is that people simply don’t want to have a lot of kids because it’s a chore. Society puts pressure on people to form a family by constant propaganda in popular media and by using peer pressure (once all your friends have kids all they do is stuff for kids. people without children are left out). My guess is poor people have more kids because they don’t have family planning education and resources to do it. Once you satisfy the societal need to form a family unit (usually by having one child) there’s no more pressure and people stop having children. I’m sure there are many people that would like to have one child by can’t afford it (or they think they can’t afford it) and government can help them but no matter what you do people will not go back to having 4 or 5 kids. There’s no “natural drive” to do it.

      • CookieOfFortune@lemmy.worldEnglish
        1·
        2 hours ago

        $200k isn’t sufficiently rich:

        Do people you know just not like their kids? Parents generally really like their offspring.

        There’s definitely some biology involved. For example, women can forget the pain of childbirth.

        • ExLisper@lemmy.curiana.netEnglish
          1·
          2 hours ago

          Interesting. I looks like it starts going up around the 1% threshold again. This is the level where kids are not a chore anymore. People have nannies to take care of the kids when they wake up at night, change diapers, feed them, drive them to school and so on. Maybe you’re right. When you hit a level of income that lets you have kids and live your life at the same time people will opt for more kids. You know what? You convinced me. We should aim for making everyone a millionaire. I have no idea if it’s economically feasible or how would it work but it’s a nice goal to have.

          Do people you know just not like their kids? Parents generally really like their offspring.

          Of course they like their kids but kids are also a major pain in the ass. They are always happy when they can leave kids with grandparents or at childcare. I know a couple where the mother doesn’t work and they still leave the kid at childcare. Even during holidays when both of them don’t work they still take the kid to childcare. I guess they all aim for the 1% experience of only spending quality time with kids, not having them around all the time.