China want to boost its economy

VAT reduction in China, good for business

Starting today China is reducing its VAT, or valued added tax, from 16 percent to 13 percent in an effort to boost the economy by about $90 billion. As a result of the cut, foreign brands including Louis Vuitton, Montblanc and Piaget are lowering their prices by 3 percent and retail platform Tmall Global is also adjusting them accordingly.

The government hopes the reform will boost domestic sales and encourage consumers to buy at home instead of overseas.