Gasoline, auto, iPhone price cuts amid China's VAT reduction

Drivers are filling up their tanks with a sense of relief today after gas and diesel prices dropped across China. They are going to save around 9 yuan each time they fill up their tanks.

[Photo: VCG]

The National Development and Reform Commission says a new value-added tax (VAT) rate adjustment, which came into effect on April 1, is the reason for the price cut.

Meantime, many industries including electricity, auto and cargo train service have lowered their prices following the country's VAT reform measures. Apple has also reduced prices of its products including iPhones, iPads and laptops.

[Photo: VCG]

Last month, Chinese authorities announced detailed measures to implement the country's VAT reform to further reduce the tax burden on various industries.

Starting April 1, taxpayers that are subject to the 16-percent VAT rate on their taxable sales or imported goods will enjoy a 13-percent VAT rate, while those who are subject to the 10-percent VAT rate will only need to pay 9 percent, according to a joint statement released by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs.