Import tariffs on sulfur, as well as value-added tax on the import of sulfur for use in production, are completely exempted
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Affected by factors such as tight international raw material supplies and rising prices of imported fertilizers, domestic sulfur prices have been increasing continuously, which in turn has led to a rise in sulfuric acid prices. The export of sulfuric acid’s downstream products, namely fertilizers, is strong, and their prices are also on the rise. In order to prevent a large outflow of domestic resources, ensure the market supply of fertilizers within the country, and ease the upward trend in domestic prices, the **Commission for Development and Reform has decided, after consideration, to waive the 1.5% import tariff on sulfur starting in 2008. At a sulfur price of 500-525 dollars, this would only allow the company to save around 50 yuan. In addition, a 13% production value-added tax is exempted for sulfur imported by manufacturing enterprises; as a result, these enterprises can save around 500 yuan in costs when importing sulfur. This allows them to reduce their production costs by 550 yuan. When this savings are passed on to sulfuric acid products, the cost per ton of sulfuric acid can be reduced by about 180 yuan. (China Fertilizer Information Network) (2008-1-21)
I’m not sure how effective it will be.
Still, it’s good news for current fertilizer companies as well
Will the price of sulfuric acid drop like this? Can excessive exports of fertilizers be restricted? Enough tuition has been paid!
It makes no sense to exempt imported sulfur from the 13% value-added tax on production! ! No input tax is payable; only output tax needs to be paid. There’s no deduction possible, which means even greater losses! ! ! :'(
I agree with what was said above; this is just a temporary solution. Moreover, the cost-effectiveness of sulfur varies between domestic and international markets, which is why the price of sulfuric acid keeps rising sharply. . . . :handshake