Experts and scholars in the industry suggest abolishing fertilizer export tariffs

Recently, at the economic operation analysis meeting of the first three quarters organized by the China Petroleum and Chemical Industry Federation, experts and scholars attending the meeting expressed their views on the issue of chemical fertilizer tariffs one after another. Wang Ying, deputy director of the Information Department of China Phosphate Fertilizer Industry Association, said: "in the past, the chemical fertilizer industry enjoyed various preferential policies, so the state imposed relevant tax and fee restrictions on the export of chemical fertilizer products to balance the development of the industry. With the cancellation of various preferential policies and the re-collection of value-added tax, the production costs of chemical fertilizer enterprises have increased significantly, so it is necessary to abolish chemical fertilizer export tariffs to promote the healthy development of the chemical fertilizer industry. "

Su Jianying, director of the Industry Department of China Nitrogenous Fertilizer Industry Association, also proposed to abolish urea export tariffs. In recent years, under the influence of multiple factors, such as the cancellation of railway freight rates, the increase in natural gas prices, the market-oriented reform of electricity prices, and the resumption of value-added tax, the cost of chemical fertilizer has risen sharply. In the first three quarters, the domestic chemical fertilizer market is difficult to speak of. Although the export volume has increased, export prices have continued to decline.

Quick comment: it is an indisputable fact that there is serious overcapacity in China's chemical fertilizer industry. The state's preferential policy for domestic chemical fertilizer enterprises has been gradually cancelled and the purpose of resuming value-added tax on chemical fertilizer is to solve this problem. And the current global nitrogen and phosphate fertilizer capacity also continues to expand, leaving less and less room for China's chemical fertilizer export. The top priority of China's chemical fertilizer industry should be to speed up transformation and upgrading, eliminate backward production capacity, and improve the scientific and technological content of products, rather than relying on the "temporary cure" of the abolition of export tariffs.