With the approval of the State Council, on August 10, 2015, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation issued the "Notice on the Resumption of the Collection of Value-Added Tax on Chemical Fertilizers" (Cai Shui [2015] No. 90), which stipulates that since September 2015 From the 1st, on the fertilizers sold and imported by taxpayers, value-added tax will be levied at a uniform rate of 13%, and the original value-added tax exemption and tax refund policy will be suspended accordingly.
Since 1994, the state has been implementing preferential policies such as exemption from taxation or VAT refund for some chemical fertilizer varieties produced, circulated and imported in China, and has played an active role in ensuring the supply of chemical fertilizers, stabilizing the prices of agricultural materials, and supporting agricultural production. . However, with the development and changes of the situation, the drawbacks of the above-mentioned policies have become increasingly apparent. On the one hand, the preferential policies for fertilizer value-added tax were introduced under the background that my country's fertilizer supply was in short supply, the state imposed price controls on it, and the value-added tax deduction chain was incomplete. The current market and policy environment have undergone great changes, and fertilizer price controls have been Fully liberalized, the relationship between supply and demand has changed from insufficient supply to excess capacity, and with the advancement of the pilot reform of replacing business tax with value-added tax, the input tax deduction of fertilizer enterprises has become more and more sufficient, and it is necessary to continue to implement preferential value-added tax policies for fertilizers. Not much. On the other hand, judging from the implementation of the policy, farmers and enterprises have not actually benefited much, and it has also brought about problems such as repeated taxation and inconsistent policies. In particular, the problems of overcapacity and excessive application of fertilizers have become increasingly prominent. It is required to cancel the preferential value-added tax of fertilizers. The voice of the policy is getting stronger and stronger, and some fertilizer manufacturers also propose to resume tax collection as soon as possible. In order to implement the requirements of the Central Rural Work Conference on reducing the excessive use of agricultural inputs as soon as possible, adapt to the development and changes of the situation, and solve the problems in the implementation of the policy, it is necessary to stop the implementation of the preferential policy of fertilizer value-added tax in a timely manner.
At present, the price of chemical fertilizers is relatively low, and the market supply is sufficient and competition is sufficient, which provides a favorable opportunity for the adjustment of the preferential policy of chemical fertilizer value-added tax. At the same time, the state still implements the VAT exemption policy for organic fertilizers in the whole process of production and circulation, which is conducive to encouraging the production and use of organic fertilizers, optimizing the structure of fertilizer use, and promoting sustainable agricultural development. In addition, because the state has institutional arrangements such as comprehensive subsidies for agricultural materials and dynamic adjustment, even if there are some fluctuations in the price of fertilizers, the adjustment of fertilizer value-added tax preferential policies will not have a big impact on normal agricultural production and farmers' income increase.