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Five sectors impacted by value-added tax rate cuts

chinadaily.com.cn | Updated: 2018-05-03 06:35
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Apple iPhone X samples are displayed during a product launch event in Cupertino, California, US, Sept 12, 2017. [Photo/Agencies]

China will cut value-added tax rates as part of a tax reduction package amounting to 400 billion yuan ($63.58 billion) this year, according to a decision made at a State Council executive meeting on March 28.

On Tuesday, the VAT rate for manufacturing was lowered from 17 percent to 16 percent; and the rate for transportation, construction, basic telecommunications services and farm produce went down from 11 percent to 10 percent.

While there is only a one percentage point cut in each tax bracket, the reduction will impact a wide range of sectors in the real economy. Let's take a look at which sectors are impacted.

1. The price of an iPhone was reduced, with limited changes. 

Taking the iPhone as an example, the minimum price for the iPhone X was cut to 8,316 yuan from 8,388 yuan, the iPhone 8 Plus was reduced from 6,688 yuan to 6,630 yuan, while the iPhone 8 was lowered to 5,837 yuan from 5,888 yuan. Its wearable device AirPods were reduced to 1,276 yuan from 1,288 yuan.

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