World-renowned foreign brands in China, including Apple and Gucci, have announced a decision to cut prices in China as VAT rates go down.
China began to cut VAT for multiple industries on Monday.
Apple’s online store in China reduced the price of the iPhone XS and iPhone XS MAX by 500 yuan ($74.6), while the price of the iPhone XR dropped by 300 yuan. Its new iPad Air, iPad mini and AirPods are also on the price reduction list.
Luxury brands Louis Vuitton and Gucci also announced a 3% drop in their overall product lineup.
In the past few weeks after China announced the VAT rate cut, automakers including Mercedes-Benz, BMW, Audi, Lincoln and Volvo have reduced the car’s suggested retail price by $80,000.
China has enacted large-scale tax cuts, including reducing the VAT rate for manufacturing and other industries from 16% to 13%, and reducing the VAT rate for transportation, construction and other industries from 10% to 9%.
