Recent news about the fertilizer complex levy VAT in the industry a ripple. Reporters interviewed a number of industry experts learned that complex VAT no significant impact on the industry long-term costs, but before and after re-sign starting node, because the grace period of uncertainty and enterprises to adjust the speed at different rates, will have an impact on the local market. Nitrogen, phosphorus, potassium, fertilizer, the impact will be greater potash VAT. Insiders also believe that the VAT levy imply complex fertilizer market has taken the substance of the pace, can reduce fertilizer market to some extent, non-standard operations, while helping to eliminate backward production capacity.
It is said that from September 1 to restore all fertilizers will be unified VAT applicable tax rate of 13%. According to the Minister of Jiangsu Huachang Chemical Co., Ltd. Li Haofeng analysis of strategic planning, for urea, phosphate, fertilizer and other production enterprises and traders, the complex VAT, the general taxpayer had included in the cost of coal, electricity, sulfur , VAT ammonia, rock phosphate and other raw materials paid during the purchase can be stripped out from the cost, it is used as the input tax deduction. We have implemented "Camp changed by" transport costs, warehousing costs, movable equipment contained in the purchase price of input tax and the upcoming launch of the real estate business after the change by re-establishing the plant, can be deducted proceeds.
Insiders did accounting, after deduction of urea production costs increase most 1% to 3.5%. Li Haofeng noted that complex VAT impact on the production costs of the proceeds mainly to see how much portion can be deducted, the remaining part will really not be deductible into the enterprise tax price, this part of the proportion of each company is different. Minister of the International Department of Hubei Yihua Group Zhongxu Liang believes that the fertilizer urea VAT re-sign in remission overcapacity, to support the market price will play a positive role.
The industry generally believes that VAT recovery greater impact on the potash industry, and relatively small impact on fertilizer. Potash Fertilizer Co., Ltd., deputy general manager of the Department of Guo Qiang think, re-sign after the value-added tax, whether domestic or imported potash fertilizer, the cost will increase. Yuntianhua International Chemical Co., Ltd. Marketing Director BOTH N said that large-scale compound fertilizer enterprises have a certain budget for tax increases every year, the impact of VAT on the compound fertilizer enterprises should be relatively small.
Some market participants believe that, do not rule out the initial fee before and after the local market will fluctuate, manufacturers, traders are likely to increase the cost by selling price increases, for a stock of goods but the lack of proceeds from the invoice of enterprises and traders, if the stock is too more or can not digest, they will face increased costs once you start taxing. Therefore, some of the industry calls for national arrange appropriate grace period.
Business people have that, from the last two years have been canceled electricity, transportation and other fertilizer preferential strategic point of view, the state is promoting the fertilizer market with the policy instruments. VAT re-sign not only help guide the farmers to reduce the amount of chemical fertilizer, chemical fertilizers will lead to more market-oriented steps taken essence, the fertilizer market can be reduced to some extent, non-standard operation, and will contribute to the elimination of backward production capacity.