Apple made significant price cuts to Lion compared to what the company charged for Snow Leopard. Because the price didn't change much in the US or Canada -- it rose 3% from $29 to $29.99 -- we can assume the main reason for the change in pricing is cost savings from digital delivery.
Pricing was compared within individual countries so any VAT or taxation should be identical.
Update: As a commenter Halluxxx correctly points out, the pricing of Snow Leopard in Japan is Y3,300, not Y4,400. We regret the error
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