HANOI (Vietnam News/Asia News Network): The Ministry of Agriculture and Rural Development (MARD) has proposed a value-added tax on fertiliser products to support domestic producers.
According to existing regulations, fertilisers are not imposed value-added tax (VAT). Therefore, fertiliser production enterprises do not have declaration, deduction and refund of VAT for input materials. That has made input costs high, causing selling prices to increase.
With the high selling price, domestically-made fertiliser producers cannot compete with imported products, and farmers must face higher production costs.
The ministry has also proposed to review the export tax policy for urea, Diammonium Phosphate and Monoammonium Phosphate fertilisers and have export control measures for those fertilisers to meet the domestic demand.
According to the Ministry of Industry and Trade (MoIT), fertiliser exports saw high growth in the first four months, up 46.9 per cent in volume and 192.6 per cent in value due to increased export prices.
MoIT said it would review the domestic demand for this strategic product to take appropriate management measures for export and import activities.
That would take advantage of the high prices to enhance exports and ensure supply for domestic consumption, especially if raw material prices rose too high.
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