Apple's CEO, Steve Jobs, replied to emails sent by several customers who argued that Apple priced its iPad outside the US way higher compared to those in the United States.
According to Macrumors, the iconic head of Apple told them to educate themselves pointing to the fact that "UK prices must by law include VAT, which is around 18%. US prices do not include tax."
Local taxes in the US vary hugely, between nought and 11 percent, so much so that it is not possible to display the myriad of potential prices across the board. This means that the actual difference in price between US and UK prices are quite different.
As it stands, our calculations how that there's only a mere 8 percent difference in price or roughly $40. Still, it doesn't explain why Apple need to add this extra other than because of distribution overheads.
Equally, there's an additional tax of 15 Euros on the iPad in Germany because it is classified as a PC without a disc-burner, prompting Jobs to call for German buyers to "Blame your government. Germany just added a new copyright levy for computers."