Core Viewpoint - The cancellation of the VAT exemption on contraceptives, effective January 1, 2026, marks the end of a 30-year policy aimed at controlling population growth, reflecting a significant shift in national population policy from control to encouragement of childbirth [1][4][8]. Group 1: Historical Context - The policy of family planning emerged in the 1970s due to rapid population growth, with contraceptives included in the public health service system to ensure accessibility [3]. - In 1994, contraceptives were officially exempted from VAT, further reducing costs for the public and supporting the goal of controlling population numbers while improving population quality [3][4]. - Over the past 30 years, the exemption has been closely tied to family planning efforts, with over 500 million yuan allocated annually for the procurement and distribution of contraceptives [3]. Group 2: Policy Shift - The gradual relaxation of birth restrictions, including the introduction of the two-child and three-child policies, indicates a shift from population control to encouraging childbirth [4][5]. - The decision to cancel the VAT exemption is seen as a response to the declining birth rate, which fell to 1.07 in 2022, significantly below the replacement level of 2.1 [4][5]. Group 3: Economic Implications - The removal of the VAT exemption will require manufacturers and sellers of contraceptives to pay a 6% VAT, potentially increasing government revenue [7]. - The change in policy is expected to signal a reduction in reliance on contraceptives and promote a more supportive environment for childbirth, aligning with broader strategies such as birth subsidies and extended maternity leave [5][7]. Group 4: Societal Impact - The end of the VAT exemption reflects a fundamental change in public attitudes towards family size, moving from a focus on quantity to a more rational and diverse approach to family planning [7]. - The cancellation of the exemption symbolizes a transition in population governance, emphasizing the need for a focus on population quality, structure, and distribution in response to new demographic challenges [7][8].