As a new round of value-added tax rate cuts were implemented starting May 1, Apple Inc and some major automakers cut their product prices in China.

Apple slashed prices of its entire lineup. 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.

Major luxury automakers including Mercedes-Benz, Jaguar Land Rover and Lincoln also started slashing prices on a slew of models.

The first move was made by Beijing Mercedes-Benz Sales Service Co Ltd, which announced adjustments to the suggested retail price on Tuesday with cuts of up to 32,000 yuan.

On the same day, Jaguar Land Rover followed suit, with the biggest price cut of 20,000 yuan. Lincoln also announced some price adjustments to its five models, the Navigator model receiving the largest reduction of 10,000 yuan.

In addition, the National Development and Reform Commission also issued a notice on its official website Sunday. The maximum retail prices of gasoline and diesel have been cut by 75 yuan and 65 yuan a metric ton respectively, starting from Monday.

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.

Starting from May 1, the value-added tax rate for manufacturing will be lowered from 17 to 16 percent; and the rate for transportation, construction, basic telecommunications services and farm produce will go down from 11 to 10 percent.

VAT reform was first tested in Shanghai before being rolled out nationwide in May 2016. It has delivered tax cuts worth a total 2.1 trillion yuan in the past five years.