Apple, luxury brands drop China prices as VAT cuts take effect

BEIJING, Apr 02 (Reuters): Apple Inc and other consumer brands lowered prices for their products in China on Monday as a cut in the country's value-added tax (VAT) rate came into effect from April 01.

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

Suggested retail prices for brands including LVMH's Louis Vuitton and Kering's Gucci were also cut by around 3 per cent, according to local media reports.

It follows announcements last month from car brands BMW AG and Mercedes-Benz, which said prices for several car models would drop following the tax changes.

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

A spokeswoman for Louis Vuitton confirmed its China business adjusted prices on Friday and said the brand is "fully supportive of the Chinese government's ongoing efforts to narrow the price gap between China and overseas".