tax

How to deduct home insurance on your 2025 income, and in what cases you can do it on your 2026 tax return

by

We are going to tell you in which cases you can deduct home insurance from the 2025 Income Tax return, which is what we do in 2026 to account for the last fiscal year. You can now request and submit your draft online and from the mobilebut before doing so pay attention to this. We have already explained to you the most important boxes to which you have to pay attention in your declaration, but there are also others that should be looked at in case you can scratch any deductions. One of them is related to home insurance when the home is linked to a mortgage. We will tell you in which cases you can deduct this insurance and how to do it. Conditions to deduct home insurance In the Income Tax return that we are doing this year, you can only deduct insurance linked to homes that you have acquired before January 1, 2013. Therefore, the date you purchased your home is very important. The maximum annual deductible base for investment in housing amounts to 9,040 euros. You will be able to deduct 15% on this amount, so The maximum deduction is 1,356 euros in your statement. Home insurance is included in the deductions related to the mortgage, but it is not possible to deduct it entirely. In addition to this, another condition is that The insurance must be linked to a mortgage on a mandatory basis. Come on, at the time the bank should have forced you to take out this insurance as a requirement to grant you this mortgage, a practice that we can sometimes encounter. Specifically, the Tax Agency says the following: The premiums for life and fire insurance contracts, provided that they are included in the conditions of the mortgage loans obtained for the acquisition (or, where applicable, for the construction), rehabilitation or extension of the habitual residence. This means that you will also be able to deduct the insurance that you were forced to take out when the mortgage was to acquire the home, to rehabilitate it or to expand it. Besides, It must be your habitual residencenot a secondary or vacation one. How to deduct your home insurance If your home insurance meets the conditions to be able to deduct it, all you have to do is write the insurance amount in boxes 547 and 548 of the Income Tax return, which are those destined for investments in your habitual residence. The deduction amounts to 7.5% in the state section and another 7.5% in the regional. Self-employed workers will also be able to deduct workspace insurance, whether in-person or teleworking. In this case you will have to do it in box 200, the one Insurance premiums for this type of professional expenses. Here, as usual, You must have documentation proving payment of this insurance, and that the document details the risks covered. This should be kept in case the Treasury decides to do a check to verify that everything is true. In Xataka Basics | Income Guide 2025: calendar, previous steps and how to prepare for the 2026 declaration

The Tax Agency does not want you to use ChatGPT for Income. The problem is that their alternatives are worse

by

The general director of the Tax Agency, Soledad Fernández, has opened the Income 2025 campaign with a clear message: do not use ChatGPT to make your declaration. “With how much the Tax Agency team has dedicated themselves to providing the best help and assistance tools, I wouldn’t risk doing it with ChatGPT,” he said. The warning has a certain meaning. The language models They can hallucinate, they do not have access to your real tax data, and asking them to manage your return involves passing them personal and financial information that ends up stored on private servers. The risk of error (and sanction) is real. That said, there are more nuances. Why is it important. The Treasury notice comes at a time when millions of Spaniards are looking for any shortcut to avoid one of the most tedious procedures of the year. If the official answer is “trust our tools”, the logical question is: are those tools really up to the task? Between the lines. What the Treasury does not say is that the underlying problem is not ChatGPT: it is that the Spanish tax system is opaque enough that using an AI seems like a reasonable solution. If millions of citizens are tempted to delegate their declaration to a chatbot, it is because something has failed before. The complexity of personal income tax (with its regional deductions, its cases of ascendants and descendants, its special regimes) is not an accident of design. It’s the design. The current situation. Treasury has presented improvements in Web Rental for this campaign: more access to data capture windows, greater interaction between sections and better information on subsidies. It has also improved its app. And it maintains the traditional channels: The plan “We call you“starts on May 6 (appointment from April 29). In-person attention in offices, from June 1. They are real advances, but gradual. Renta Web continues to be a platform that requires prior knowledge to navigate with ease. The Treasury virtual assistant resolves generic doubts, but not specific cases. Yes, but. The alternative that remains for those who do not master taxation is to pay a manager. A service that has a cost that not everyone can afford, and that turns a right (understanding and managing your own declaration) into something that must be outsourced. It’s the equivalent of IKEA selling its furniture without instructions and then complaining that people look up videos on YouTube to assemble it. The big question. The Tax Agency also assures that it does not use AI in the processing of files or in extensive control, and that its risk analysis systems “cannot be considered AI in the strict sense.” Although it leaves the door open for its future use. The question they do not answer is another: if AI is good enough for the Treasury to study it internally, why can’t it be part of a solution that helps the taxpayer from within the system, with their own data and with legal guarantees? In Xataka | Draft Income Tax 2025: how to enter and present your 2026 declaration online with the Tax Agency website Featured image | Xataka

how to enter and present your 2026 declaration online with the Tax Agency website

by

Let’s tell you how to access your 2025 Income draftwhich is the declaration that you have to present in 2026 to account for the last fiscal year. The Income Tax calendar has reached its key day, and starting today, April 8, 2026, you can now access your draft and file your return with it. But before you jump into doing it, remember that It is very important to check that everything is fine. Basically because the Tax Agency makes the draft with all the data collected about you, but there may be errors, and if there are errors and the declaration is erroneous you are going to pay the fine although the error in collecting data was made by the Treasury. It is your responsibility as a citizen to review it. You should also remember some of the things that you need to prepare in advance to make the declaration. To identify yourself on the Treasury website, you will need to have a digital certificatelike the FNMT certificateor alternatively be registered in the Cl@ve system. It is also convenient view and review your tax databecause they are the ones that the Treasury then uses in the draft. Enter your draft income tax online To enter your draft Income Tax Return you must enter the Tax Agency website. For that, you have to enter the page agencytributaria.es/AEAT.internet/Renta.shtmland click on the option Draft/declaration processing service (Direct Income and WEB Income) that will appear at the top in the options of the section Featured Managements. Before going to the draft, you will first go to the page where you should identify yourself as a citizenso that the Treasury can use your personal draft. To identify yourself you can use your digital certificateincluding the FNMT certificate and that of DNIethe PIN code or Mobile Key, or the reference number. When you log in, you will go to a screen where you have to choose that you are going to act on your own behalf. Come on, you’re going to do your draft. You can also act as a representative of another person, but this is more for advice, so you must choose the option of Act on your own behalf and click on Confirm. Now you will finally enter the index of the Income Services 2025. On this page, click on the option Draft/declaration processing service (Direct Income and WEB Income)which is where you will access the draft. This will take you to the draft declaration. On the first page you have to confirm your Identification Datawhich are personal and those of your spouse if you have one, or your children. Here, You can choose the option to make an individual declaration with the option you have at the top in the box Declarant. When everything is filled in, you will have to go down to the bottom and click on Accept. Then, you will go to another page where you can incorporate your economic activities such as salaries and mortgage loans for the habitual residence deduction. It will automatically show you registered data to decide whether to add it or not, and if you do so you will have to enter additional data. And then you will go to your declaration page, where now you have to review all the data to make sure all fields are correct, and add anything that is missing. On this page, the field Declaration result can be positive or negative. This is what each thing means: If the result is negative: It means that you will be charged, that the Tax Agency will have to pay you the amount that appears. If the result is positive: It means that you have to pay, and you will have to pay the Tax Agency the amount that appears. When you have reviewed all this data and consider that everything is fine, you will have to press the button Submit declaration. This is the button to finish the process and submit your tax return online. However, don’t forget review the most important boxes of the declaration. And also remember that it is important to take your time, and that you will have a stop button. Keep to save your changes and continue reviewing the draft later. Take all the time you need. In Xataka Basics | Income Guide 2025: calendar, previous steps and how to prepare for the 2026 declaration

resurrect the energy tax

by

The war escalation produced by the Third Gulf War has caused a crisis in the price of energy that inevitably evokes the ghosts of what was experienced after the Russian invasion of Ukraine four years ago. Faced with this scenario, five heavyweights of the European Union have decided to step forward to prevent history from hitting them again. In short. On April 3, the economy ministers of Spain, Germany, Italy, Austria and Portugal sent a formal letter to the European Commissioner for Climate Action, Wopke Hoekstra. The request, advanced on social networks by the Spanish vice president Carlos Body, is direct: they demand exploring “an instrument of temporary solidarity so that energy companies contribute with the extraordinary profits obtained during the war.” A double reading. The movement of this block of five countries is understood from two positions: economic and political. On the one hand, they seek to protect the citizen’s pocket and public coffers. to alleviate the cost of the crisis and curb inflation falls on business margins and not exclusively on “consumers (…) without overloading public budgets,” as the original letter states. On the other hand, from a political focus, the letter seek to send a message of unity. The measure would demonstrate to citizens that Europe is “united” and capable of “acting.” Furthermore, he sends a serious warning to the market: “those who benefit from the consequences of war must do their bit to alleviate the burden that falls on the population.” The mirror of 2022. To speed up procedures and avoid legal labyrinths, the five ministers propose using a formula that has already proven effective. The proposal is based in resurrecting Regulation (EU) 2022/1854the same emergency tool that was activated in the Ukrainian crisis. The signatories maintain that this precedent provides the tax with the “solid legal basis” that is necessary to act immediately before the current market volatility. However, as might be expected, it will not be an exact copy. There is a technical nuance to take into account: Spain and its allies have asked the Commission to study “if and how” the profits that these oil multinationals obtain abroad can also be taxed. This would allow for more targeted and effective taxation on surpluses generated globally. Despite the intentions, the fine print still needs to be outlined. The text sent to Brussels is still a declaration of intentions that “does not offer details on what percentage should be applied to extraordinary profits or on which companies said tax would fall.” While Europe decides, Spain assumes the bill. In parallel to this European debate, the Spanish Executive has already deployed a shock package that reduces VAT on fuel from 21% to 10% and reduces the special tax on hydrocarbons. The results are tangible: the price of gasoline has dropped to 1,557 euros per liter and the March CPI has been cushioned to 3.3%. However, the bill for this “relief” at the pumps costs the State coffers 5,000 million euros. Precisely, the budgetary pressure that the new European tax seeks to alleviate. The ball, on Brus’ roofandthe. The letter is already on the table of the European Commission. The main demand of those responsible for the economy of Spain, Germany, Italy, Austria and Portugal is that this measure be addressed “as quickly as possible.” Now the diplomatic and technical countdown begins. The barrel of crude oil maintains its upward trend due to instability in global supply routes, which is why technical services in Brussels are expected to evaluate the legal basis of this possible instrument in the coming weeks. Europe faces the challenge of demonstrating whether its fiscal reflexes remain as sharp as in 2022. Image | Unsplash Xataka | The tyranny of 24/7: how the insatiable hunger of algorithms suffocated the power grids of the 20th century

The Tax Agency has not made the income tax return manual accessible for decades. A Valencian man did it in three hours

by

“Javier, has the program PADRE come out yet?” Every year, at the end of March, my father—not to be confused with my FATHER—asked me the same question, because I was like an AI alerting him that he could finally get down to it. the income tax return every year. For him that was not just an obligation. I would say it was a hobby. Almost a passion. Something to which he dedicated hours and hours in his office armed with his pens, his tight handwriting, his calculator and of course with the Nobel package next to it. He is no longer here, but if I have not inherited something from him, it is that passion for filing income tax returns. In fact, I have never done it, perhaps because as I saw that he dedicated so many hours and effort to making it perfect, that caused me some trauma. “Ugh, this costs too much,” I told myself then and I continue to tell myself now. And here I am, with a reverential fear of completing that task, which I end up entrusting to a manager because time, they say, is money. And yet, it is a small outstanding debt that I have. Last year I tried to try it, and this year I told myself that maybe with the help of some local AI model (because of privacy) I should try it again. But while I was thinking about it, these days the practical manual of Income 2025and one person decided to do something very interesting with that information: he turned it into something useful. This is how the LaRenta.es Open Source project emerged This manual, no matter how complete and detailed it may be, has a problem: it is very inaccessible. The information is there, but neither the wording nor the structure or its organization make it a particularly useful document for most users. That’s where it came into action. Paul March (@paumrch), a public administration worker who lives in Valencia and who, at 31 years old, has a profile completely aligned with the so-called civic technology. Although his training is not technical, he is a very restless self-taught person who has been “tinkering” with all kinds of personal technological projects for more than 15 years. And the latter has become especially popular. We have had the opportunity to speak with Pau and he told us that by working in public administration and being interested in the application of technology to his field, “I have always been interested in the issue of digitalization of the administration because I know it and I know the room for improvement there is and I am convinced that citizens need that improvement.” When the Income 2025 practical manual appeared, he realized that he could try to do something with it. With the experience of previous projects and the new AI tools that he had been using for months, he got the ball rolling. In just three hours, he confesses, he created LaRenta.esa web service that allows any user Know what state and regional deductions you can take advantage of in this statement. The first question of the questionnaire is important: where we pay personal income tax. The deductions to which we may be entitled depend on this parameter. To do this, it has created a very simple system in which, from a small questionnaire that takes two minutes to complete, we can obtain information about these deductions. The process is reduced to going through seven stages of this questionnaire with a few questions, from which it is possible to obtain a final summary with deductions to which we may end up being entitled. And in each of them, we will have an indicator to know what percentage of the total of each deduction we may be entitled to, as well as detailed information about each particular deduction. In these details, the information present in the 2025 income manual is used more clearly and directly, but although the language is still somewhat harsh, at least in this project only that which is directly related to that deduction is shown in a more readable format. We are therefore faced with a project that is not intended at all to prepare your income tax return, but rather to at least provide the information that exists is more accessible and easier to understand. And as March says, it is far from being a perfect project, but it certainly shows that all that information offered by the public administration can be converted into something even more useful in a relatively simple way. From idea to application in three hours These days this entrepreneur explained the process of creating this webapp in an article posted on his Twitter account (X), and as I said there, the cycle was surprisingly simple. AI was his companion throughout the project, and he took advantage of his experience with previous projects to then take advantage of several tools: The interface design was carried out with the help of GoogleStitch The programming was done with the plugin Claude Code in Visual Studio Code. He used Opus 4.6 to plan the entire project, and Sonnet 4.6 to program it, although for some basic tasks he indicates that he also used Anthropic’s basic model, Haiku. He did it all on March 19, right during the Cremá, the big day of the Fallas in his city, Valencia. The project absorbed him so much that he didn’t even enjoy the party and he spent that afternoon and part of the night polishing the errors he was detecting. The result, as can be seen on LaRenta.es, is a fully functional, fast, clear and practical web application. Not only that: it is totally private. Pau explains that no data is saved except for the email if a user wants the summary PDF report to be sent to them. The potential of civic technology When the project was finished, Pau decided post a message to share it through your Twitter … Read more

Donating cash to children is exempt from personal income tax for parents. It is not free for children

by

Young people do not have it easy to get ahead in a context of very tight salaries and with him housing prices skyrocketed. Therefore, helping children or a family member financially becomes the natural impulse. However, this willingness to help may have tax consequences What is important to know before making the transfer. In a binding query Addressed to the General Directorate of Taxes (DGT), a body dependent on the Treasury, a person raised the possibility of helping his family financially through a cash donation. The consultation made it abundantly clear: anyone who donates cash has nothing to fear on their tax return. The same cannot be said about the person who receives it. ​What the Treasury says about the donor’s personal income tax. The General Directorate of Taxes responded to a person who wanted to donate cash to his mother. The DGT pulled the file and argued its response in a previous binding consultation, in which a father raised the tax consequences of donating cash to his children. The Treasury’s response establishes that “for the donation of money, no capital gain or loss will be computed for the donor,” which implies that on the part of the person who gives that money there is nothing to declare or pay in the Income Tax. The technical reasoning is quite logical and simple. When money is donated, there is no difference between the value at which it was acquired and the value at which it is transmitted, so there is no alteration in the donor’s assets that justifies paying taxes on it, as established in article 33.1 of the Law on Personal Income Tax. When the gift is not money, the story changes. The organization itself takes advantage of the consultation to remember that the exemption from personal income tax taxation Applies exclusively to cash donations. That means that if parents They donate a home to their children that they bought 20 years ago for 100,000 euros, and that at the time of donation its value is 200,000 euros, must pay personal income tax for that increase of 100,000 euros in its value between the date of purchase and the donation. The same occurs with shares or other assets with market value that may increase in value between the purchase price and the donation price. The most curious thing is that this principle does not apply in the same way if that same property had lost value since its purchase, the donor would not be able to deduct that loss. Children do pay the Gift Tax. It should be noted that the fact that the father does not pay personal income tax for that donation does not mean that the transfer of assets has no consequences for the person who receives it. The child who receives the money is obliged to declare the donation and settle the Inheritance and Donation Tax. This tax falls on the person who receives the donation, not on the donor. The amount to be paid for the child or family member depends on factors such as the amount received, the degree of relationship and, above all, the autonomous community where the recipient resides for tax purposes. Depending on what requirements are met, the amount to pay may be close to zero euros, but it is necessary to complete the procedure. If the donation is not declared within the established period, the Treasury may impose penalties and interest. A tax that depends on the communities. The Inheritance and Donation Tax is partially transferred to the autonomous communities, which means that each community sets its own bonuses, reductions and tax rates. This generates very notable differences between paying this tax in one community or another. Madrid and Andalusia, for example, apply a 99% bonus on donations between parents and children, which in practice means that the recipient barely pays taxes when making this type of donation. At the opposite extreme, communities such as Catalonia or the Valencian Community have more demanding tax systems, with progressive rates and fewer bonuses. A particularly striking case is that of Extremadura, which has extended the exemption up to 200,000 euros in donations for children to buy their first home. In Xataka | The Great Wealth Transfer: the movement from boomers to millennials that will transfer millions between generations Image | Pexels (Kaboompics.com)

Dates and when the 2026 Income Tax return is made

by

Let’s tell you what they are the dates of the 2025 income tax returnthe campaign that will take place during 2026. We say that it is Income 2025 even if it is done this year because what we will do in it is regularize and account for the last fiscal year. In this article we are going to tell you what they are the most important dates of this next Income campaign. For example, we will tell you when you can start checking your tax details or request your reference number, and also when declarations can be made. There are still a couple of dates that have not been revealed, such as the consultation of tax data or the request for your reference number. But when they are announced we will update it so that you have all the data. Income tax return dates 2025 These are the main dates of the Income Tax 2025 What you should keep in mind so that you don’t miss deadlines. It is important that you remember that the income campaign this year ends a day early than last year, because it will also start a day earlier. Tax data consultation: Unannounced, but possibly mid-March. Reference number request: Unannounced, but possibly mid-March. Income tax return online: You can do it from April 8 to June 30, 2026. Income tax return by phone: You can do it from May 6 to June 30, 2026. In-person income tax return: You can do it from June 1 to June 30, 2025. And now, we are going to tell you How can you request an appointment? for telephone and in-person income. Appointment for telephone statement: You can request an appointment to make your declaration by phone, calling the numbers 91 535 73 26 / 901 12 12 24 or 91 553 00 71 / 901 22 33 44. You can do so from May 6 to June 30, 2026. Appointment for in-person declaration: You can request an appointment to make your declaration in person, by calling the numbers 91 535 73 26 / 901 12 12 24 or 91 553 00 71 / 901 22 33 44. You can request the necessary appointment from May 29 to June 29, In Xataka Basics | IRPF withholding calculator 2025: how to use it online to know your minimum withholding recommended by the Treasury

A tax on billionaires has made the founder of Google seek refuge in Miami. A $173 million shelter

by

Larry Page, co-founder of Google and second largest fortune in the world according to Forbespacks his bags after 30 years living in California. It’s not a whim. There is a compelling reason behind this decision: not pay taxes. However, the millionaire moves from state to state. the most millionaire way possiblewhich is none other than spending no less than 173.4 million dollars on two mansions near the sea in Miami. A house with a name and surname in Coconut Grove. According to published The Wall Street Journalthe co-founder of Google has acquired two properties in Coconut Grove, one of the most exclusive and luxurious neighborhoods in Miami, for about $101.5 million and $71.9 million respectively, for a total outlay of $173.4 million. One of the mansions was initially put up for sale for $135 million and extends over a 1.8-hectare beachfront plot, has 13 bedrooms and 15 bathrooms, several pools and gardens surrounding the construction. The mansion was owned by Jonathan Lewis, a well-known philanthropist and civil rights activist who died in 2023. The sale of this mansion known in the area as “Banyan Ridge“, closed in mid-December with a significant discount. ​A second retreat close. As and how they point From the specialized real estate portal Realtor, without leaving the neighborhood and just under four minutes by car from his main residence, the millionaire would have bought a second mansion for about 71.9 million dollars. This second property would also be located on the seafront with views of Biscayne Bay. In this case, the construction has about 1,579 square meters, seven rooms and belonged to the journalist and writer Sloan Barnett, heiress of billionaire George L. Lindemann, as he collected The Wall Street Journal. Fleeing the millionaire tax. Larry Page’s hasty move and other Silicon Valley millionaires It comes in the context of California’s plans to vote on approving a tax that would levy 5% to the estates of more than 1 billion dollars. According to what was published by The New York TimesIf the tax is approved, it could be applied retroactively to those billionaires who reside in California as of January 1, 2026. Therefore, in order not to be included in that calculation, Page has packed his bags to start the year as a resident in Florida. Analysts consulted by the American media calculate that, taking into account that it is the second largest fortune in the world with a valuation of 270.1 billion dollars, this tax could mean a tax bill of more than 13 billion dollars. Following in the footsteps of Bezos and Musk. Larry Page’s move is not an isolated or strange case. Jeff Bezos did the same from Seattle in 2023, although at that time justified his move to Miami to be closer to the family and operations of Blue Origin, his aerospace company. Bezos also made a grand landing in Florida, buying several mansions on the artificial island known as Billionaire Bunker for about 237 million. The change of residence (and state) has given you an estimated tax savings of about 1 billion dollars. Something similar happened to Elon Musk who, after his judicial dispute over the payment of his salary bonus of Tesla in Delaware, changed the headquarters of his companies and his residence to Texasavoiding paying 13.3% in California capital gains taxes. Bad news for your neighbors. The exodus of millionaires from California is making local real estate agents make a killing selling luxury homes in areas like Coconut Grove. Dina Gold Thayer, by Douglas Elliman, explained to The Wall Street Journal that “every two days, we show available homes to San Francisco clients. Everyone is in a hurry to buy to avoid the retroactive application of the wealth tax.” This rush to buy is an opportunity for residents, since their potential buyers had less room for negotiation, causing prices in the area to skyrocket even more. In Xataka | In a financial carom, Google has stood up to NVIDIA, leaving an unexpected winner in the crazy AI race: Larry Page Image | Flickr (Fortune Global Forum)

China wants Chinese people to have more children. So he’s going to put a special tax on condoms

by

China wants more babies. Many more. Enough to increase their birth rate and stop the population loss which has allowed India ahead as the most populous nation on the planet. After repealing his ‘one child’ policy and display a wide range of measurements pro-natalism at a political, social and economic level, Xi Jinping’s Government has made a radical decision: make condoms more expensive and other contraceptive items. By first time in 30 yearswhoever wants to buy them will no longer enjoy a VAT exemption. In summary: sex becomes more expensive…at least the insurance. Sex with a condom? Pay more. have sex you will be more expensive in China from now on. At least if you want to do it with contraceptives. In the context of a broader tax reform that basically affects the value added tax (our VAT), Xi Jinping’s Government has decided remove exemption tax that condoms enjoyed until now. The decision is not exactly new. The law on which it is based was approved at the end of 2024, but it is now generating noise on social networks and the media for a very simple reason: its effects will begin to be felt shortly, from the January 1, 2026which is when Chinese couples will encounter rising prices on contraceptives. One figure: 13%. The change is important because this type of contraceptive items enjoyed a VAT exemption since 1993when China implemented the rate nationwide. From now on the scenario will be different and those who want to buy condoms will find themselves with a VAT of 13%. Today, precise Guardiana package of standard prophylactics costs between 40 and 60 yuan ($5.7-8.5). The contraceptive pill, available in the country without a prescription, ranges between 50 and 130 yuan, from 7.1 to 18.5 dollars. The price increase will not be exorbitant, but it has generated criticism on networks such as Weibo. “I was very angry when I saw that condoms were going to have taxes and increase in price,” he complained recently a user on RedNote. “Is it so easy to profit from us workers? I got so angry that I placed an order at night for the condoms that I like… I accidentally bought too many.” Why now? The million dollar question. The Chinese government has not simply imposed taxes on condoms. The measure is framed in a broader initiative that seeks to modernize the tax system and check the list of products and services exempt from VAT. At the end of the day, the consumption tax represents a crucial part of the tax revenues that feed the Chinese coffers. All in all, it is striking that Beijing decides to make contraceptives more expensive precisely at a time when the country loses population and look for ways to encourage their birth rate, which has led the State to act as a matchmaker, help to couples with babies or even go household by household to encourage women to have children. It has also not gone unnoticed that the same tax reform contemplates a tax reduction for childcare services. There is more at stake than Chinese demographics: there is the country’s economy, supported by its enormous domestic market, and the challenge of what to do with million pensioners. “Unlikely”. The other question is… Does the Government really expect that applying a 13% tax on condoms will result in more babies? An IndexBox report shows that in 2020, close to 5.4 billion condoms. There is who thinkslike Quian Cai, from the University of Virginia, that a price increase may “reduce access” to contraceptives, especially among the poorest population, but warns of the consequences. “It could lead to more abortions and increased health care costs,” prevents Cai. The risk? That in an attempt to increase the birth rate, China finds itself with more terminations of pregnancies and a resurgence of diseases sexually transmitted. Others are simply skeptical that making condoms more expensive is going to influence the number of pregnancies, especially if one takes into account that one of the brakes on birth rates is the high cost of parenting. “The tax itself is unlikely to have a noticeable effect on birth rates,” explains to TIME Yuan Mei, professor at the School of Economics, Singapore Management University. “Decisions about having children in China are mainly influenced by economic and lifestyle factors, such as the cost of raising a child and long working hours. These factors outweigh small changes in the price of condoms.” So what for? There is who considers that the rate has a symbolic nature and really seeks to delve into a message. “Now that China’s birth policy has shifted toward promoting birth and no longer promotes contraception, it is reasonable to tax condoms again,” reflect He Yafu, Guangdong demographer. Nor does it seem that the initiative will have a notable economic impact. Not at least if you put it in context. Lee Ding of Dezan Shira & Associated explains to Guardian that taxing condoms will add around 5 billion extra yuan a year to state coffers (about $710 million). It is a considerable figure, but very small when compared to the billions that the country collects in general. “We don’t believe that income generation is the main motivation.” Images | Fenghua (Unsplash) 1 and 2 and CDC (Unsplash) In Xataka | While the birth rate in China plummets, a region does not stop having children. Their secret: being a large family has a reward

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.