China cuts sales tax by 3% to nationalize the luxury market: meanwhile, high-end brands further cut prices

New cut in prices of luxury goods in China, after that of July 2018. Sales tax cuts were introduced April 1st, which means that the manufacturing industry will experience a sales tax change from 16% to 13%. A choice that was taken to lead Chinese people, used to shop abroad, to choose to shop inside local stores, thus avoiding the usage of Chinese currency abroad and leading consumers to fuel the internal market. High-end brands chose to cut prices seen the reduction in the percentage of sales tax. According to local media, prices at Gucci and Louis Vuitton were cut by about 3%. A spokesperson of Louis Vuitton stated to Reuters that the price adjustment “fully confirms the Chinese government’s efforts to reduce the price difference between China and across the ocean”. Apple, among other brands, also chose to reduce its prices.

TRENDING
  • loading...

PREMIUM CONTENT

Choose one of our subscription plans

Do you want to receive our newsletter?
Subscribe now
×
Sei un nuovo utente? Abbonati/Registrati