What is the impact of re-imposing value-added tax on chemical fertilizers?
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With the approval of the State Council, on August 10, 2015, the Ministry of Finance, the General Administration of Customs, and the **State Taxation Administration issued the \"Notice on Restoring the VAT Collection on Fertilizers\" (Caishui [2015] No. 90). This notice stipulated that as of September 1, 2015, VAT would be levied at a rate of 13% on fertilizers sold and imported by taxpayers; the previous policies regarding VAT exemptions and refunds after taxation were accordingly discontinued. What is the specific impact of reinstating value-added tax on the fertilizer industry?
Currently, many large enterprises already pay a significant amount of taxes at the raw material stage, so the re-imposition of value-added tax on fertilizers will not have a major impact. Furthermore, re-imposing value-added tax and price increases are different concepts; if it is possible to use this opportunity to stabilize fertilizer prices, it would actually be a good policy for the fertilizer factories that are still in operation.
Who can tell me what impact this will have on exports?