South Africa’s BRICS ally raises condom prices with VAT introduction
The country, in a bid to boost declining birth rates, has made condoms and other contraceptive measures more expensive.
China, a key BRICS partner to South Africa, has officially introduced a 13% value-added tax (VAT) on condoms and other contraceptives as of 1 January 2026. The removal of previous tax exemptions is part of a strategic push by Beijing to encourage higher birth rates in the face of a shrinking population and record-low marriage rates.
This policy shift by China marks a significant departure from South Africa’s own tax framework, where condoms were explicitly listed in 2020 alongside sanitary pads and tampons as essential hygiene products exempt from VAT.
While the South African Revenue Service (SARS) maintains a standard VAT rate of 15% on most goods, it continues to provide zero-rating or exemptions for essentials to support public health and provide relief to consumers.
South Africa’s BRICS ally desperate to halt decline birth rates
In Beijing, the move has been met with significant skepticism from residents and economic analysts alike. Jessica, a local resident in her thirties, told AFP that the immense pressure on the youth – from employment to daily life – has “absolutely nothing to do with condoms”.
She highlighted a growing class divide, noting that many people lack the confidence in their future required to start a family.
Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy in Singapore, noted that the tax is trivial compared to the true cost of child-rearing in China.
According to Wu, young couples are not calculating the cost of contraception but are instead questioning if they can afford to raise a child amidst “prohibitive” housing costs, a weak job market, and a stressful work culture.
China’s population has declined for three consecutive years and could fall from 1.4 billion today to 633 million by 2100, according to United Nations predictions.
While President Xi Jinping has vowed to address these demographic problems, residents like 19-year-old student Du argue that companies must first guarantee better maternity and marriage benefits to convince couples to have children.
The contrast between these two BRICS nations highlights their diverging social priorities. While China uses fiscal measures to discourage contraception, South Africa continues to prioritise the accessibility of reproductive health products through its tax-exempt status.