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Chemical fertilizer value-added tax will be levied as a foregone conclusion on September 1? What is the impact of fertilizer production and marketing?

Published: 2024-09-16 Author: mysheen
Last Updated: 2024/09/16, The news of the resumption of value-added tax on chemical fertilizer, which has attracted wide attention since last year, will be solved in recent days. It is said that the collection of all chemical fertilizers will be resumed, and the implementation date is most likely set on September 1, 2015. Especially through the grapevine, the policy of value-added tax on chemical fertilizer

The news of the resumption of value-added tax on chemical fertilizer, which has attracted wide attention since last year, will be solved in recent days.

It is said that the collection of all chemical fertilizers will be resumed, and the implementation date is most likely set on September 1, 2015. Especially through the grapevine, the government document on the value-added tax policy of chemical fertilizer is very likely to be released tomorrow.

It is understood that the proportion of VAT levied is 6%. For example, the ex-factory price of a certain fertilizer is 1000 yuan per ton, that is, a value-added tax of 1000 yuan per ton is levied, and the cost of chemical fertilizer is invisibly increased by 60 yuan per ton. the higher the unit price, the heavier the tax. In the face of the sudden collection of value-added tax, what do people in chemical fertilizer enterprises think?

Zhong Xuliang, head of the International Department of Hubei Yihua Group: it is bad for the enterprise in the long run!

There is no doubt that the chemical fertilizer value-added tax will increase the ex-factory price of urea by 4050 yuan per ton, which is disadvantageous to the enterprise in the long run. However, levying value-added tax on chemical fertilizer also has a good side for the urea industry. Because of the serious overcapacity of urea in recent years and fierce market competition, many urea manufacturers compete to reduce costs in order to improve market competitiveness, resulting in a decline in prices. Therefore, the collection of value-added tax on chemical fertilizer will play a positive role in supporting market prices.

PetroChina Natural Gas Co., Ltd.-Zhang Genius: resuming expropriation can speed up the adjustment of industrial structure

Resuming the collection of value-added tax can contribute to promoting enterprises to adapt to market demand and speeding up the adjustment of industrial structure.

Xu Dingguo, Marketing Director of Yunnan Yuntianhua International Chemical Co., Ltd.: it is difficult to judge the long-term impact

The introduction of the policy has little impact on compound fertilizer and phosphate fertilizer enterprises, because these large enterprises have a certain budget for tax increases every year. Because the policy details are not clear, it is difficult to judge the long-term impact of VAT on chemical fertilizer enterprises for the time being.

Zhang Hanqing, Deputy General Manager of Jiangsu Huachang Chemical Co., Ltd.: if all enterprises are the same, it is not a problem.

In the short term, the sudden levy of VAT may increase the social inventory of fat enterprises and increase the cost of enterprises. But in the long run, now that the policy is in place, it is no longer a problem for all enterprises to face the same problem, and VAT invoices will be issued for the VAT part.

Li Shuyu, manager of Heilongjiang Bifeng International Trading Co., Ltd.: it is not certain whether the price will rise with it.

Value-added tax is levied at the policy level, and enterprises have to accept it even if they do not accept it. the current collection rules have not yet been announced. Generally speaking, the cost of chemical fertilizer products will increase after VAT is levied, but in the current market environment, it is not certain whether the price will rise with it. After the increase in costs, it is good that the market can accept it, but the market cannot accept it, and it has to be borne by manufacturers and circulation links. The same is true of exports. it is good that foreign businessmen can accept it, but foreign businessmen cannot accept it. in the final analysis, it is still the responsibility of the manufacturers.

Deputy General Manager of Potash Fertilizer Department of Sinochem Chemical Fertilizer Co., Ltd.-the cost of domestic potash fertilizer and imported potash fertilizer will increase.

Guo Qiang, Deputy General Manager of Potash Fertilizer Department of Sinochem Fertilizer Co., Ltd.: after VAT is levied, the cost of domestic potash fertilizer or imported potash fertilizer will increase. However, the impact on domestic potash fertilizer will be less than that of imported potash fertilizer, because domestic potash fertilizer has been taxed in some aspects of the production process, which will have a certain deduction for the increase of product VAT.

Can an expert surnamed Wu, an independent observer of the chemical fertilizer industry, subsidize the money to farmers?

Resuming the collection of value-added tax on chemical fertilizer is the need of the market-oriented reform of chemical fertilizer, and these preferential policies aggravate the excess capacity to a certain extent. After the restoration of VAT, the cost of chemical fertilizer products is high, but the state can subsidize this part of the money to farmers and guide enterprises to do a good job in agrochemical services.

 
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