Discussion on the impact of reinstating value-added tax on fertilizers
Thread Content
Starting from September 1, **the application of a unified VAT rate of 13% will be reinstated for both domestic sales and imports of fertilizers. Let’s discuss together what impacts this new policy will have on each of us
The price of tons of urea has risen slightly by 30 to 50 yuan
**By reinstating a uniform 13% VAT rate for both domestic sales and imports of fertilizers, prices for fertilizers will definitely rise. Farmers need to cover the increased costs, **either by adjusting the prices of agricultural products or through direct subsidies.
This is a regulatory measure; its impact should not be significant, as urea is not expensive to begin with
The key issue is that the current selling price of urea is very unfavorable! The current situation for traditional urea production is not optimistic.
What is the current development situation of fertilizers in your company, and are there any innovative approaches?
I have some ideas, but they are not yet mature and require further exploration and research.
The increase in value-added tax did not yield the desired market response; urea prices continued to fall, and after the introduction of this tax, the profit margins of the workshops actually decreased. However, part of the input tax can be deducted, which is beneficial for the company.