On September 1, in accordance with the requirements of the "on the recovery of fertilizer to impose value added tax policy notice", the sales of taxpayers and imported fertilizer, unified by 13% tax levy value-added tax, the original VAT tax exemptions and tax refunds policy stop execution. Although the discussion of this policy adjustment has a long history, but after the official release or in the industry caused no small concern boom, the controversy focused on the follow-up of the policy. Among them, if there is a big market fluctuations or the emergence of tax pass, the impact on agricultural production and farmers' income is particularly noteworthy.
The introduction of any policy has its objective background and multiple reasons, Pareto optimal is often the ideal pursuit, if a policy can achieve a relative balance between fair and efficiency, short-term and long-term, in a certain stage to achieve maximum effectiveness is good policy. Therefore, whether it is in 1994 the national implementation of fertilizer tax incentives, or today's heavy levy fertilizer vat are so.
90 years of last century, China's chemical fertilizer industry is not yet mature, backward technology, production capacity is low, it is difficult to meet the needs of agricultural production. Facts have proved that to tax preferential policies to support and promote fertilizer industry is growing rapidly and play an effective role in protect the fertilizer supply and stabilize the price of agricultural means of production, promoting the development of agricultural production. The current cancellation of preferential policies, in line with the current situation of China's national conditions and long-term development of strategic requirements. From the demand side, China agricultural development level of shrunk grain production "Eleventh even increase, a bowl of rice to more and more firmly. At the same time, due to long-term excessive application of chemical fertilizer, ecological environment and resource conditions of the "tight hoop curse" continue to tighten, forced China to resource conservation, ecological friendly modern agricultural transformation. In accordance with the requirements of the main crop fertilizer use zero growth in the future will gradually slow down the momentum of China's chemical fertilizer demand growth. From the point of view of supply, fertilizer demand era gone, instead of chemical fertilizer industry backward technology, high cost, excess capacity and product structural contradictions has become increasingly prominent. Stock of digestion, to make the optimal incremental, to achieve the healthy development of the fertilizer industry has become a consensus, the abolition of preferential tax policies, so that the market plays a decisive role in the allocation of fertilizer industry.
On the role and impact of the new deal, the relevant departments and experts have been fully demonstrated, for the policy adjustment may bring short-term pain, given enough attention and full consideration. On the one hand, the current fertilizer prices are relatively low, the market supply is adequate for the recovery of the stock market to prevent a greater volatility in the stock market. On the other hand, the state of the organic fertilizer is still in the production and circulation of the whole link is exempt from value-added tax, in order to reduce the fluctuation of chemical fertilizer price, optimize the use of fertilizer structure, and promote the sustainable development of agriculture.
Of course, it is also the view that the impact of this policy adjustment is limited, will not make the market price fluctuations, but the tax burden passed on to the end user, the possibility of the majority of farmers that the interests of the majority of farmers still exist. Chemical fertilizer is still just need to put into agricultural production, combined with China's agricultural products prices and supply and demand situation, as the end user of chemical fertilizer, it is difficult to pass the price of fertilizer on agricultural products consumers. As a low income group, the cost increase will further affect the farmers' production enthusiasm, but also to promote farmers' income and the big target is not the same.
Therefore, the author suggested that the relevant state departments should pay close attention to and in-depth research of the new policy chain reaction and the subsequent effects, real-time monitoring of chemical fertilizer market volatility, the establishment of perfect fertilizer price abnormal fluctuation smoothing mechanism. Secondly, to improve the accuracy of the preferential policies, the introduction of new fertilizers to support the development of organic fertilizer, bio fertilizer and other measures to guide the transformation and upgrading of chemical fertilizer enterprises. Third, we should further promote the soil testing formula fertilization, and actively promote scientific fertilization knowledge and technology to guide farmers to change the extensive production habits of the flood, not only conducive to the reduction of chemical fertilizer and sustainable development, the same can optimize the fertilizer industry and market structure. Finally, although currently involved in comprehensive agricultural subsidy reform is pilot, but if the fertilizer price fluctuations larger states can combine the reform of "three subsidies" policy, from the fertilizer value added tax revenue took a part of the subsidies for agricultural production and operation organizations, ensure the farmer production enthusiasm will not be weakened due to the increase in the cost of production. In a word, strive to efforts in various aspects, let the new deal and subsequent a series of related policy adjustment to achieve development of green agriculture, farmers benefit from the income, the fertilizer industry to upgrade the win-win situation.