- The Ministry of Finance in Vietnam has proposed a 5% value-added tax (VAT) for fertilizers.
- Currently, fertilizers are tax-exempt, which has impacted production costs and profitability.
- The proposed tax adjustment aims to make domestic fertilizer production more competitive against imported alternatives.
- Foreign fertilizer sellers can recover their input VAT, potentially offering lower prices and gaining a competitive advantage.
- The Government may miss out on VAT revenue at the import stage.
- Domestic fertilizer manufacturers and the Ministry of Industry and Trade recommend reclassifying fertilizers into the 5% VAT category.
- Many countries adopt favorable tax policies for fertilizers, recognizing their importance in agricultural production.
- If approved, buyers of fertilizers would have to pay a 5% VAT, but market-driven pricing adjustments could benefit consumers.
Source: vietnamnet.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
