The country is considering the introduction of recovery to impose value added tax policy on all fertilizer variety. Fertilizer to restore a 13% value-added tax, coal, natural gas, electric power, rock phosphate, sulfur and other raw materials and transportation costs are allowed in the input tax general taxpayer deduction, domestic production and sales of chemical fertilizer products eventually including tax price only rose slightly. According to estimates, the current gross margin level, urea recovery after taxes including tax price only rose about 1%-2.5%.

However, according to the current management of VAT export regulations, Urea Export will aggravate the burden of 40-50 yuan / ton tax. Consider the 80 yuan / ton from quota tariff than the 2014 year 40 yuan / ton off-season tariff increase of 40 yuan / ton, 2015 annual Urea Export Tax (value-added tax + customs duty) will increase 80-90 yuan / ton.

Similarly, diammonium phosphate and compound fertilizer and other fertilizer exports will increase considerably the tax burden.

Hope that the relevant departments in the fertilizer export tariff policy and the cancellation shall be exempt from value-added tax policy, considering the industry tax burden.