Apple and luxury brands lower prices in China as VAT cuts come into effect

BEIJING (Reuters) – Apple Inc. and other consumer brands lowered prices for their products in China on Monday, as a reduction in the country's value-added tax (VAT) rate came into effect on April 1.

The product price tags listed on Apple's Apple website were lowered Monday morning, including a discount of up to 500 yuan ($ 74.44) for some of its latest iPhone models.

Suggested retail prices for brands such as Louis Vuitton from LVMH and Gucci from Kering were also reduced by about 3%, according to local media.

It followed announcements from BMW AG and Mercedes-Benz, announced last month, that prices for several car models would drop as a result of the tax changes.

Apple declined to comment on price cuts, while Kering did not immediately respond to requests for comment.

A spokeswoman for Louis Vuitton on Friday confirmed adjusted prices for its business in China and said the brand "fully supports the ongoing efforts of the Chinese government to reduce the price gap between China and China." ;foreign".

In March, Beijing announced that it would reduce taxes and royalties by nearly 2 trillion yuan for all businesses in 2019. The manufacturing, transportation and construction sectors should benefit as it This is to stimulate the slowdown in the economy.

The world's second-largest economy has been growing at its weakest pace for nearly three decades, due to weaker domestic demand and a trade war with the United States.

Several Chinese electronics retailers dropped prices of iPhones in January, offering discounts of up to $ 118 on the latest models, after lower than expected sales by the end of 2018.