The country during the two sessions this year, many business representatives are members of the suggestions, I hope the Government can help companies reduce costs, especially tax cuts. Since last September, the fertilizer industry recover VAT. Fertilizer prices plummeted this year, fertilizer companies difficult forward, then there is no fertilizer industry may usher in good tax cuts, such as the recovery of VAT levied last year and then abolished? Fertilizer industry believe that many people have this desire but rational analysis, this possibility is almost ruled out.
Why? First of all, for the enterprises, lower than cost, the profit will be higher, but also consider the price and volume. Since the upstream raw material prices continued to fall in recent years, it has been equivalent to the fertilizer business and reduce costs. But last year the three major staple food prices dropped substantially, other agricultural products sales is not busy, the downstream demand has been insufficient fertilizer business, product prices have been declining fertilizer costs even upside down, still can not solve marketing problems. So the core issue of chemical fertilizer enterprises are facing not reduce costs, but to go to the inventory and production capacity, the external force alone can not solve the problem. Tariff reduction, lowering tariffs, reducing rail freight, not only palliatives, perhaps even accelerate the decline in fertilizer prices, as corporate profits will be lower.
Highlights Second, the fertilizer industry last year, the recovery of VAT, there is a difference or distinction is organic fertilizer, organic - inorganic compound fertilizers and bio-organic fertilizer exempt from VAT, which released a policy to boost fertilizer industry structure a clear signal to adjust the upgrade. Combined with the "Government Work Report" mentioned in this year's "Strengthening agricultural science and technology innovation and promotion, in-depth food green high yield and efficiency to create, implement action fertilizer and pesticides zero growth", the future government will guide the industry towards green fertilizer high yield and efficient development.
Current fertilizer in the course of the biggest problems is that farmers fertilize unreasonable and excessive fertilization, not only a waste of resources, but also on the environment great harm. So the future fertilizer companies must strive to do a good two things, first is the development of high utilization of fertilizer products, and the second is in line with government training guide farmers scientific fertilization. If the policy hand in these two areas will continue making boost, then the traditional emphasis on low-end fertilizer, fertilizer production and marketing model is certainly wasteful use of deliberately "suppressed", it is also possible to cancel the VAT fertilizer important reasons.
Finally, it should be clear in the eyes of the Government, the role of fertilizer business positioning. The country during the two sessions this year, some local governments Executive's views on very representative: fertilizer companies originally had four hats - high pollution, high energy consumption, less employment, do not pay taxes. "In theory, you consume resources, resulting in a certain amount of pollution, the number of jobs did not solve the problem, then it should be taxed." Therefore, the fertilizer business would be difficult then to agro industrial capital, the government will pay particular the preferential policies.
Another factor is that China's accession to WTO, other countries on China's exports of fertilizer products are exempt from VAT issue has been questioned over the years has also put pressure on China's central government. Thus, the recovery of VAT can be said clockwise homeopathy, open bow is no turning back.
Fertilizer is resource-consuming, energy consumption and emissions of large industry, after years of rapid expansion of production capacity, domestic and foreign markets have been no more Chinese fertilizer production and capacity of. In such a situation, do not speed up industrial restructuring and upgrading, and want to lift external forces and deregulation, are wishful thinking and delusion.