What happened: From 1 January, China exempts childcare services from sales tax but maintains a 13% sales tax on contraceptives. This move is part of efforts to encourage higher birth rates.
Why it matters:
- Reducing childcare costs could ease financial burdens on families considering having more children.
- Keeping the tax on contraceptives may affect access and choices around family planning.
MNN Take: China aims to boost birth rates by making childcare more affordable while still taxing contraceptives, reflecting a complex approach to population policy.
Sources: BBC World