China, VAT cut is bringing its advantages

03/04/2019

 

Among the most famous brands, Apple and Mercedes have significantly lowered their prices after April 1st

 

As of April 1, VAT was lowered in China and the producers lowered the suggested retail prices to distribute the profits from the tax reduction. Now Chinese consumers are benefiting from it.

To lower the prices have been in many, for example, on April 1, Apple reduced the suggested retail price of products on its official website, on single-brand stores and on e-commerce platforms, as well as on physical stores. iPhones are now on sale for 500 yuan ($ 74) less than on March 31st.

In particular, China has lowered its VAT rate from 16% to 13% throughout the manufacturing sector. This move has led to an 8% price reduction for Apple products. For example, the Air Pod headsets with wireless charging are priced at 1,558 yuan, down 2.6% compared to the original 1,599 yuan.

 

Apart from Apple, many companies have also taken action and declared price changes

 

But there are not only lower prices on manufacturing. The China Railway announced on March 31 that it would lower the price of general rail transport and also the automotive industry, in its own way, responded to the VAT cut, particularly to luxury brands.

Beijing’s Mercedes-Benz sales department has decided to lower prices in China. The reduced prices of the Mercedes-AMG models have generated savings of up to 64,000 yuan and Mercedes-Maybach has seen price cuts of up to 60,000 yuan.

 

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