How to interpret the value for the given problem?

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Given:

"Hariharan goes to a shop to buy an FM radio costing $ 1404 including sales tax at 8% He asks the shopkeeper to reduce the price of radio so that he can save the amount equal to the sales tax. The reduction of the price of the radio is:"

Questions:

What exactly is the problem telling us to calculate? What factor are we asked to calculate here?