“Abolition of VAT is undoubtedly a big advantage for the organic fertilizer industry!†Recently, the “Notice on Exemption of VAT on Organic Fertilizer Products†issued by the Ministry of Finance and the State Administration of Taxation (hereinafter referred to as the “Noticeâ€) was issued in the industry. Caused a warm response. In interviews with reporters from the Southern Rural Daily, nearly all organic fertilizer company executives clap their hands in applause.
It is understood that in China's fertilizer industry, chemical fertilizers have been canceled for many years. However, for the organic fertilizer industry, there is no clear provision for the value-added tax of the organic fertilizer industry for a long time, and there is no explicit prohibition on the collection, resulting in mixed policies among different provinces and regions. There is a lack of a fair competition platform among organic fertilizer companies. “The country’s exemption of VAT on organic fertilizer products will make the competition among various companies tend to be fair.†said Hu Shide, manager of Xintian County Runtian Organic Fertilizer Co., Ltd. The fertilizer enterprises called for the New Deal to benefit from the “Notice†requirement. Starting from June 1, taxpayers will be exempted from tax on the production, sales, and wholesale and retail of organic fertilizer products. According to the "Notice", organic fertilizer products that enjoy the aforementioned tax exemption policy refer to organic fertilizers, organic-inorganic compound fertilizers, and bio-organic fertilizers. The circular stipulates that taxpayers enjoying tax exemption policies should independently account for sales of organic fertilizer products in accordance with the "Provisional Regulations on Value-added Tax of the People's Republic of China" and "Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax". Those who have not separately accounted for sales may not be tax exempt.
At the same time, taxpayers selling organic fertilizer products that are exempt from taxation shall issue ordinary invoices in accordance with the regulations and may not issue special invoices for value-added tax. Taxpayers applying for exemption of value-added tax shall provide the competent tax authorities with information such as fertilizer registration certificates and qualified reports on the testing of organic fertilizer product quality and technology. Anything that cannot be provided shall not be subject to tax exemption.
With the introduction of the new policy, large-scale production enterprises are undoubtedly the biggest beneficiaries. Wu Shide said that due to the increase in the cost of raw materials and labor, the profit margin of the originally smaller organic fertilizer was squeezed and it was difficult to develop. The elimination of VAT by the state shows that the country is paying increasing attention to the organic fertilizer industry and it is undoubtedly a great advantage for the industry. "Of course, the biggest beneficiary is still a production company." He said that the value-added tax paid by the company's products reached more than 60 yuan per ton. The company was put into production in the first year of last year, and its product sales reached more than 20,000 tons, and the value-added tax paid It has reached more than 120 million yuan. "Without saving the money, we can give it to farmers, or use it for equipment updates or technological changes," said Wu Shide.
Liang Wentao, deputy general manager of Guangzhou Tianhe Auto Agrochemical Technology Co., Ltd., also stated that the introduction of the New Deal embodies the state's emphasis and support for the organic fertilizer industry. According to reports, there are currently more than 60 organic fertilizer manufacturers in Guangdong Province, among which there are more than 10 companies with an annual output of over 20,000 tons. The elimination of VAT is beneficial to the development of larger enterprises.
Shanghai Lianye Biotechnology Co., Ltd. is a large-scale manufacturer of bio-organic fertilizers. Zhang Guoqin, the person in charge of Guangdong Province, communicated to the headquarters at the first time after receiving “Notice†news. However, he admitted that the good news in this industry is not very much related to consumers. The current raw materials, such as sharp price increases, it is not realistic for companies to let profits to farmers.
In a conversation between reporters and some fertilizer dealers, they found that they did not “feel the cold†in the new policy of exempting VAT, because they had never been caught before and they are still there. Or to speed up the development of the industry However, the New Deal is of great significance to the entire organic fertilizer industry.
According to reports, in Jiangsu, Beijing and other provinces (cities), some organic fertilizer production enterprises have not only no value-added tax, but also received strong support from the local government, and even some provinces also give certain subsidies to the production enterprises. In Guangdong and other provinces, organic fertilizer companies have not been as lucky and are naturally in a disadvantageous position in the competition. In this regard, Wu Shide believes that after the state exempts value-added tax, enterprises can directly benefit from it. What's more important is that they are finally competing with domestic counterparts on the same platform.
Insiders pointed out that at present, China's commodity organic fertilizer industry does not have a unified national or industrial standard, organic and inorganic fertilizer production is only local standards, and refined organic fertilizer companies are multifarious, indicators are different, nutrient content differences, The craftsmanship varies. Some enterprises have low production levels and backward processes, and substandard products appear from time to time. According to the results of the latest fertilizer inspection conducted by the Guangdong Provincial Department of Agriculture, 11 lots of refined organic fertilizers were sampled, 5 batches of products were qualified, and the qualification rate was 45.5%; 4 batches of organic-inorganic compound fertilizers were checked, and 1 batch of products passed the qualification rate. It is 25%. The organic fertilizer product market has relatively large hidden troubles.
In response, Huang Chi-lin, general manager of Dongguan Sancai Trading Co., Ltd., said that the state's exemption of VAT on organic fertilizer products provides an opportunity for production companies to use this part of the funds to update outdated equipment, introduce new technologies and professionals, and thus continue to Develop and strengthen ourselves and promote industrial development. It will also stimulate and attract more people to invest and develop in the organic fertilizer industry. The market in Guangdong is huge. As a big producer of economic crops, there is a huge space for the organic fertilizer market in Guangdong. According to statistics, Guangdong has more than 70 million mu of cultivated crops and uses more than 6.5 million tons of fertilizer each year. In the use of fertilizer in Guangdong Province, the proportion of organic fertilizer accounted for only about 10% -20%, in some countries with higher levels of fertilizer use, the proportion is the opposite, the proportion of organic fertilizer reached 70% -80 %.
It is worth noting that in recent years, with the rapid development of Shatang orange industry in Zhaoqing, Yunfu, Qingyuan, etc., the organic fertilizer industry in Guangdong has brought boundless vitality. Nowadays, these places have become a “matchable place†for organic fertilizer manufacturers, and sales of organic fertilizers have shown a linear upward trend.
At the same time, the rapid increase in the area of ​​eucalyptus trees in Guangdong has also given rise to the commodity organic fertilizer industry. In recent years, businessmen from Guangzhou, Shenzhen and other places have raised the investment in eucalyptus trees in Qingyuan, ranging from a few hundred acres to as many as 10,000 mus. Eucalyptus fertilizers dominated by organic fertilizers have undoubtedly become the “big cakes†of many manufacturers.
In addition, the province’s 1.8 million mu of bananas and thousands of acres of vegetable bases are also huge markets for organic fertilizer products.
Faced with the huge organic fertilizer market in Guangdong, some fertilizer companies have made significant adjustments to the product structure to quickly occupy more market share. According to Liang Wentao, the company has increased the proportion of organic fertilizers in all fertilizer products of the company from below 10% to 40% in a short period of several years, and the development momentum is good.