HCMC – The General Council of Agriculture and Rural Development Vietnam has proposed levying a 5% value added tax (VAT) on fertilizers to help local farmers and improve the agricultural sector.
The proposal follows discussions between the Vietnam Fertilizer Association, the U.S. Agency for International Development (USAID), and the Vietnam Tax Consultancy Association.
The VAT would help local fertilizer companies invest in new technologies, as they could deduct input VAT. In contrast, imported fertilizers might become 5% more expensive due to the lack of input tax deductions.
If approved, this VAT is expected to boost state revenue by VND1.541 trillion from fertilizer sales.
