China to Tax Condoms in Bid for More Babies

China will remove a long-standing tax break on condoms and other contraceptives. Starting January 1, these items will have a 13% value-added tax (VAT) added to their price. The move is part of a government effort to increase the country's birthrate. Contraceptives have been exempt from this nationwide tax since 1993. Analysts see this as a "carrot-and-stick" approach. The government is using both incentives and new costs to encourage families to have more children. The change also modernizes China's tax system.