Cancellation of tax rebates has little effect on the fertilizer industry
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What impact will the country’s large-scale export tax rebate policy bring to the fertilizer industry? Recently, the reporter interviewed Wu Xiyan, chairman of the China Phosphate Fertilizer Industry Association, Yang Chunsheng, vice chairman of the China Nitrogen Fertilizer Industry Association, and some companies. They all agreed that this policy adjustment had little impact on the fertilizer industry.
Yang Chunsheng said that from January to April this year, China’s total fertilizer exports reached US$58.04 million, an increase of 90% year-on-year, which is indeed worrying. Eliminating and reducing the export tax rebate rate for some chemical fertilizer products can suppress the excessive growth of exports by increasing export costs, and help guide enterprises to reduce the export of high-energy-consumption, high-pollution, and resource-based products, and reduce low-value-added and low-tech products. The export of content products will increase the export of high value-added and high-tech products, thus guiding enterprises to adjust their investment directions and avoid blind investment and overcapacity, which is also conducive to the sustainable development of China's fertilizer industry. As enterprises, only by continuously strengthening internal management, enhancing research and development capabilities, relying on technological innovation, and reducing production costs, can we continue to enhance our core competitiveness so as to occupy a place in the international market.
Wang Xiyi, deputy general manager of Anhui Liuguo Chemical Industry Co., Ltd., believes that the export tax rebate for fertilizers should be cancelled. Because chemical fertilizers are "high-pollution, high-energy-consumption, and resource-efficient" products, we cannot sacrifice our own environment and waste precious resources for the sake of immediate benefit.
Yang Chunsheng said: “Since 2005, the country has not only eliminated export tariffs on urea, the main product of nitrogen fertilizer, but also imposed high tariffs (30% in peak season and 15% in off season). Therefore, this policy adjustment basically has no effect on the nitrogen fertilizer industry. What effect."
Li Weifeng, head of the marketing department of Jiangsu Huachang Chemical Co., Ltd., also analyzed: “Because urea has already cancelled the export tax rebate, the products included in this cancellation are all small nitrogen fertilizers such as ammonium nitrate, ammonium sulfate, and ammonium chloride. The export volume of these products is not very large. For example, the export volume of ammonium sulfate in 2006 was 538,000 tons, which was less than half of the export volume of urea. From January to April this year, the export volume was 325,700 tons, which was compared with the same period of last year. A substantial increase; ammonium nitrate in 2006 exports of 228,600 tons, exports from January to April this year was only 95,900 tons; exports of ammonium chloride is not large, from January to April this year, only exported 101,300 tons Therefore, the elimination of export tax rebates for these products will have little impact on the entire industry. If it is affected, it may be related products."
However, there are also companies that disagree with this policy adjustment. Mr. Han, general manager of Tianji Coal Chemical Group’s foreign trade company, which is based on ammonium nitrate, believes that this policy adjustment has a significant impact. He said that Tianji has nearly 100,000 tons of ammonium nitrate-related products exported in recent years, which is equivalent to about 1/3 of the company's total production. At present, the export price of ammonium nitrate is 260 US dollars / ton, according to the cancellation of export tax rebate of 13%, quite The cost per ton of exports increased by 33.8 US dollars. As a result, China's ammonium nitrate has not been competitive in the international market.
Wu Xiyan said that in the past, phosphorus fertilizer varieties, in addition to export tax rebates DAP, the rest such as monoammonium phosphate, calcium, heavy calcium, including NPK compound fertilizers are duty-free products. Diammonium phosphate has cancelled export tax rebates in the second half of last year. Therefore, this policy adjustment has little impact on the entire phosphate fertilizer industry. As for other products, due to the small volume of exports, the impact will not be great. In this regard, companies such as Yuntianhua International Chemicals Co., Ltd. and Sinochem Phosphorus Corporation also expressed the same opinion.