China to resume levying VAT on fertiliser
DATE:2015-08-12 SOURCE:Xinhua News Agency
BEIJING, Aug. 11 (Xinhua) -- China will resume levying value-added tax on fertilizer sales and imports to meet new market conditions, according to a joint ministry statement on Tuesday.
The VAT taxation rate stands at 13 percent and the new rule will take place starting from September 1, according to the statement released by the Ministry of Finance, Central Administration of Customs and State Administration of Taxation.
China has exempted fertilizer sales and imports from VAT or pay back VAT after taxation since 1994 to keep fertilizer supply and price stable.
However, now the fertilizer market is burdened with overcapacity, with farmers and companies facing increasing problems due to the outdated policy, according to the statement.
Agricultural production and farmers' income will not be affected by the policy change as China has set up a real-time agricultural supply subsidy to keep related prices stable, the statement said.