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    Home > Agriculture News > Fertilizer News > Agrochemical: 13% value-added tax will be levied on chemical fertilizers at the expiration of the transitional period

    Agrochemical: 13% value-added tax will be levied on chemical fertilizers at the expiration of the transitional period

    • Last Update: 2022-03-10
    • Source: Internet
    • Author: User
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    In 2016, a number of preferential policies in the fertilizer industry were successively cancelled, including preferential electricity prices, preferential natural gas prices, preferential transportation prices, etc.
    , which increased the production and sales costs of enterprises.
    In April 2015, the National Development and Reform Commission issued the "Notice on Lowering the Feed-in Tariff for Coal-fired Power Generation and the Price of Industrial and Commercial Electricity", requiring the gradual abolition of the preferential tariffs for chemical fertilizers, and the electricity used for the production of chemical fertilizers in accordance with the same category of industrial and commercial electricity prices, April 2016 Preferential electricity prices for chemical fertilizer production will no longer be reserved nationwide starting from 20th.
    In October 2016, the railway bureaus of Taiyuan, Zhengzhou, Urumqi, Xi'an and Hohhot comprehensively adjusted freight transportation prices, and some railway bureaus directly cancelled preferential fertilizer policies.
    In November, the National Development and Reform Commission issued the “Notice on Promoting the Market-oriented Reform of Fertilizer Gas Prices”, deciding to fully liberalize the price of fertilizer gas from November 10, and at the same time encouraging fertilizer gas to enter trading platforms such as the Petroleum and Natural Gas Trading Center.
    Market transactions form prices and realize price openness and transparency.
    In addition, in 2015, the Ministry of Finance decided to resume the collection of fertilizer value-added tax.
    From September 1, 2015 to June 30, 2016, the inventory of fertilizers sold by general taxpayers of value-added tax can be levied at 3% based on the simplified tax calculation method.
    Rate is levied on value-added tax.
    At present, when the transitional period policy expires, chemical fertilizers have begun to levy a 13% value-added tax.
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