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Vietnam NPK fertilizer export tax will be 0% from July 15

Good news for shareholders of DPM, DCM, and fertilizer businesses in general.

This is an important step in supporting NPK fertilizer businesses and at the same time promoting the development of our country's agricultural industry and farmers.

Adjustment and reduction of NPK fertilizer export tax to 0% from July 15

According to Industry and Trade newspaper, recently the Government has issued Decree No. 26/2023/ND-CP on Export Tariff, Preferential Import Tariff, List of goods and absolute tax rates, mixed taxes, and taxes. imports outside the tariff quotas in order to harmonize the benefits between domestic consumption and trade.

The application of lower export tax rates on goods produced with sufficient demand or surplus in the country, such as fertilizers, will contribute to removing difficulties for production and business activities of enterprises.

The Decree is issued with the aim of timely implementing international commitments, promoting the process of international economic integration, and contributing to macroeconomic stability; at the same time, promptly removing difficulties for domestic production and business enterprises; encouraging enterprises to continue to invest, innovate technology, reduce product costs to increase competition.

Decree No. 26/2023/ND-CP focuses on adding three main groups of content.

Firstly, consolidating regulations related to import and export tariffs, which have been amended and supplemented since 2016 until now, to continue promoting administrative procedure reform, simplifying and creating favorable conditions for the government. customs as well as enterprises during the search and implementation.

Accordingly, the Decree applies a lower export tax rate to domestically produced goods with sufficient demand or surplus, to facilitate customs authorities and businesses in the process of implementation, contributing to the implementation of Decree No. part of removing difficulties for production and business activities, encouraging enterprises to invest in machinery to produce high export value products, and ensuring fairness with similarly processed products.

Typically, for fertilizers, Decree No. 26/2023/ND-CP stipulates an export tax rate of 5% for phosphate and urea fertilizers. Particularly for DAP and NPK fertilizers, the export tax rate is 0% instead of the tax rate based on the ratio of mineral resources plus energy costs (51%), in order to reduce administrative procedures for the agency. customs and businesses.

The Ministry of Finance said that this amendment will create favorable conditions and ensure strict management while avoiding fraud in the process of collecting export taxes. This is an important step in supporting NPK fertilizer businesses and at the same time promoting the development of our country's agricultural industry and farmers.

At the same time, the export tax rates of a number of products, including copper pipes, fertilizers, charcoal, unprocessed tin, and zinc are revised based on the principle of applying higher export tax rates to other items. goods that cannot be produced domestically or cannot meet demand.

Second, to convert the Export Tariff and the Preferential Import Tariff; The list of goods and their absolute, mixed, and out-of-quota import duties and tariffs to ensure compliance with the 2022 ASEAN Harmonized Tariff Nomenclature.

This transformation basically does not affect the current regulations, ensuring the principles of fairness and reciprocity; harmonize benefits for production and business activities, domestic consumption, and in trade relations.

Third, amending and supplementing export tax rates and preferential import tax rates of some goods to overcome obstacles and difficulties in the implementation process on the basis of recommendations of ministries and branches. , association, enterprise.

Incentives for biofuels, input materials for petroleum production

Information on Agriculture, also according to the Ministry of Finance, for preferential import tax, to continue to support people and businesses, diversify the petroleum import market, in the context of possible gasoline prices. there are many complicated developments in the future.

Decree No. 26 adjusts and reduces the preferential import tax rates for biofuels, input materials for the production of gasoline, and substitutes for gasoline.

"This adjustment will contribute to supporting production and business activities of enterprises, contributing to lowering the price of domestic gasoline," the Ministry of Finance assessed.

At the same time, the Decree also amends a number of contents of the tax incentive program for automobile production and assembly to ensure consistency with relevant legal provisions that have been revised in recent years.

This amendment will ensure to facilitate the production and business activities of enterprises as well as ensure the risk management of customs authorities.

In particular, the Prime Minister also issued Decision No. 15 stipulating the application of normal tax rates to imported goods.

In particular, the normal tax rate applies to goods imported from countries that do not have MFN treatment with Vietnam and is set at 150% of the preferential tax rate of each respective item.

In case the preferential tax rate is 0%, the normal tax rate of 5% shall apply.

In addition, oil and raw materials for petroleum production are regulated at a tax rate of 0% to diversify the supply of domestically produced raw materials and reduce the cost of petroleum products.

Currently, the domestic demand for fertilizer is about 11 million tons/year while the total capacity of factories licensed to produce fertilizers is estimated at over 29 million tons/year, so all units have to find an export market. The export restriction may lead to a backlog of many commodities, especially domestic fertilizers that have been produced to meet demand, increasing costs.

The Ministry of Agriculture and Rural Development proposed the Ministry of Finance study and consider export tax policies for urea, DAP, and MAP fertilizers and coordinate with other ministries and sectors on export control measures. for urea, DAP, and MAP fertilizers to ensure domestic supply in the situation of fertilizer supply for some scarce commodities.



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