Since 1 may, the vat rate has been adjusted from the previous 17 per cent and 11 per cent rates, respectively, to 16 per cent and 10 per cent, respectively, according to a joint circular issued by the ministry of finance and the state tax administration authority, although only one point has been reduced, but it has had an impact on many aspects. For example, apple products, the iphone models are all priced down, and the prices of vehicles such as mercedes rovers should also fall. So, how does the downgrading of vat affect us
Take the data first. The price of the 64gb version of apple iphone x was $8388 before the vat was reduced by $8316, or $72, and the price of 256gb was reduced by $83. Other products have been reduced by a few dozen dollars. The largest price decrease was in imac pro, which was $338 lower from the initial price of $39,488。
Apart from electronics, the decline in cars is significant. Beijing mercedes reduced the recommended retail price to the company selling the vehicle. The car types under the mercedes flag range from $1,000 to $32,000. The jaguar rover similarly announced that it would adjust the official guidance retail price for car sales with a maximum reduction of $20,000 as of this date。
The analysis suggests that there may also be cross-border electric operators that would benefit from this adjustment. The value added tax component of the import chain of cross-border electric generators, which reduces tax rates, will reduce the cost of enterprises. For users, if in the course of the sale, the electrician indicates “no-tax”, the user is required to pay the tax on its own. Declining tax rates can bring more tangible benefits to consumers。
In addition to the above-mentioned sectors, the vat rate for goods such as agricultural products and transport, construction and basic telecommunications services has been reduced from 11 per cent to 10 per cent since 1 may 2018, in accordance with the new deal, which was deployed by the state council. Transport, communications services and the cost burden of agricultural by-products associated with household expenditures will lead to a substantial decline. Although the new deal has not yet been implemented, it is believed to be good news for the population。
