Hong Kong (CNN Business) The prices of iPhones in China are falling thanks to a tax cut that took effect Monday.

Apple cut the prices on iPhones, iPads and other products on its official Chinese website.

The cuts followed a three percentage-point drop in the rate of value-added (sales) tax that kicked in on April 1, according to state-run news agency Xinhua.

Apple AAPL reduced the price of some products, such as the iPhone XS, by even more than the 3% tax cut.

The latest 64GB iPhone XS now costs 8,199 yuan ($1,220), making it 500 yuan ($74), or 5.8%, cheaper for Chinese buyers. The iPhone XR dropped in price by 300 yuan ($45), or 4.6%.

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