China Ends 30-Year Condom Tax Break

China will soon begin charging a value-added tax (VAT) on condoms and other birth control products. This ends a tax exemption that has been in place for over 30 years. The change means contraceptive drugs and devices will no longer be on a list of goods exempt from the 13% VAT. The government has not given a reason for the policy shift. The tax break was originally established to support family planning. China's famous "one-child policy" ended in 2016. The country now faces a declining population and encourages families to have more children. Analysts say the new tax could slightly increase retail prices. However, some state media suggest the financial impact on consumers will be minimal.