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Monday, July 22, 2024

Finance Ministry proposes 5% tax rate on fertilizer exports

The Saigon Times

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HCMC – The Ministry of Finance has proposed an export tax rate of 5% on fertilizers to contribute to reducing local fertilizer prices.

Thus, the export tax rate for fertilizers with the natural resource and mineral values and the energy costs below 51% of the fertilizer prices will rise from 0% to 5%. The remaining fertilizer products will see the export tax rate unchanged at 5%, the local media reported.

According to the Ministry of Finance, the proposal will help retain fertilizers for domestic consumption amid the surge in fertilizer price. In addition, the same tax rate for all fertilizers will reduce administrative pressure on enterprises and customs agencies as they will no longer have to determine the proportion of natural resources and minerals in fertilizers.

However, the tax rate hike will effect fertilizer exporters.

The Ministry of Finance has received many agencies’ suggestions about the revision of the export tax for fertilizers as their prices have surged.

The ministry has reported a review of the fertilizer market to the Government. Accordingly, the prices of fertilizers in both domestic and international markets have increased sharply due to the hike in the prices of material imports and the shortage of shipping containers.

At present, the local fertilizer production capacity has reached 29.25 million tons, meeting the demand for nitrate and phosphate fertilizers in the local market. Meanwhile, potassium fertilizers must be imported.

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