The value-added tax of the chemical fertilizer industry is reduced to 9%. How much influence will it

Release time:2020-11-09 10:53:56    Reading volume:3232

According to the notice issued by the State Administration of Taxation, from April 1, 2019, the current 16% tax rate for manufacturing and other industries will be reduced to 13%, and the transportation, construction, feed, fertilizer, pesticide, agricultural machinery, and agricultural The current tax rate of 10% for membrane and other industries has been reduced to 9%; the tax rate of 6% is kept unchanged.

The value-added tax rate of the fertilizer industry has been reduced from 10% to 9%. How much influence will it have on the fertilizer market? Taking urea as an example, if the ex-factory price is 2000 yuan (ton price, the same below) and the value-added tax rate is 10%, the value-added tax output is 2000/1.1×10%=181.8 yuan; after the value-added tax rate is reduced to 9% , The value-added tax output is 2000/1.09×9%=165.1 yuan, the difference between the two: 181.8 yuan-165.1 yuan = 16.7 yuan, which means that enterprises can pay 16.7 yuan less value-added tax.

Generally speaking, the 1% reduction in the value-added tax rate will not have much impact on the fertilizer industry. From the perspective of the degree of influence of various fertilizer types, the impact on the potash fertilizer and compound fertilizer industry is relatively greater. The main reason is that the potash fertilizer industry is a resource-based industry, with fewer tax deductible items and lower tax rates, which benefits more. Compound fertilizer belongs to the secondary processing industry, and the reduction of value-added tax has double benefits: on the one hand, compound fertilizer uses nitrogen, phosphorus and potassium as raw materials. After the value-added tax is reduced, the cost of raw materials will be reduced; on the other hand, the production of compound fertilizer itself also exists. The issue of value-added tax reduction. But even so, the value-added tax rate is lowered by 1%, and the value-added tax paid per ton of potash and compound fertilizer products will basically not exceed 40 yuan, which is not large.

The impact of the lower value-added tax on the fertilizer market is reflected in two points. When the market is good, it can be converted into corporate profits, which is good for fertilizer companies. Take a 500,000-ton chemical fertilizer plant as an example, paying 20 yuan less value-added tax per ton can increase profits by 10 million yuan a year. But when the market is not good, it is likely to become a weapon for bargaining in the market. The cost is reduced, and everyone has more money to bargain. That would be bad for the market. This is to be vigilant.

In addition, China applies the same value-added tax policy to imported products and domestic products. The reduction in value-added tax means that import costs will decrease, which may lead to more foreign fertilizers entering China. Taking potash fertilizer as an example, the current contract price of potassium chloride is 290 US dollars. When the value-added tax rate is 10%, the value-added tax per ton of potassium chloride imports is 194.3 yuan; when the value-added tax rate is reduced to After 9%, the value-added tax paid is 174.87 yuan, which can save 19.43 yuan. The reduction of value-added tax may lead to an increase in China's fertilizer imports, which will have an impact on the domestic fertilizer market.