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Ministry lifts tax on fertiliser for export
The excise tax on fertilizers manufactured for export has been lifted under a decision issued by deputy minister of Finance Nguyen Hoang Anh Tuan on December 15.
The decision applying to sulphate ammonia, potassium and diamonium phosphate fertilizers took immediate effect on December 15.
The move aims to ease the enormous surplus of fertilizer and keep the prices of fertilizer exports on a par with world prices.
The Government applied an excise tax of VND4,000 or VND5,000 per kg of fertilizer in July to limit exports and stabilize the domestic market.
According to the Ministry of Agriculture and Rural Development, the price of fertilizer now fluctuates widely due to unpredictable factors, such as the number of middle-men through which it has passed.
Fertiliser is sold by manufacturers and importers to regional distributors who, in turn, sell it to district-and commune-level agents, confirmed Vietnam Fertiliser Association vice chairman Nguyen Hac Thuy. Each agent can add VNS10-20,00 per tonne to the cost.
Meanwhile, Government subsidies paid to domestic fertilizer manufacturers have artificially lowered domestic prices and destroyed any incentive to import more expensive fertilizers.
In the past months, this has created a shortage on the domestic market, with domestic suppliers sometimes only able to meet about half of the domestic demand.
VOV, VNS
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