China to hike tax on condoms in attempt to boost falling birth rate

China is trying to boost its birth rate but incentives are having little effect Photograph: Oscar Wong/Getty Images

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.