Consider the appropriate export tax rate for fertilizer products

According to the Ministry of Finance, according to the current Law on Import Tax and Export Tax, fertilizers have an export tax rate bracket from 0% to 40%. Specifically, for fertilizers with a value of mineral resources plus energy costs, if less than 51% of the product cost has an export tax rate of 0% and from 51% or more, the tax rate is 5%.

In recent times, the price of fertilizer production materials on the world market has continuously increased sharply due to the tension between Russia and Ukraine, along with the development of the Covid-19 epidemic, which disrupted the supply chain while the demand is high. Along with that, many countries have restricted the export of fertilizers to retain the supply for the domestic market. In the country, fertilizer prices have also continuously increased over the past time.

In order to contribute to lower domestic fertilizer prices, stabilize supply, and at the same time, create favorable conditions, ensure strict management, and avoid fraud in the implementation process, based on the tax rate bracket specified in the Tax Law. For export and import tax No. 107/2016/QH13, the Ministry of Finance has issued Official Letter No. 3662/BTC-CST to ask for opinions from Ministries, branches, localities, associations and enterprises on project construction documents. Decree on Export Tariff and Preferential Import Tariff, which is expected to be submitted to the Government for regulations unify a 5% export tax rate for fertilizers (except for organic fertilizers), regardless of the percentage of mineral resources in fertilizer products.

Currently, the Ministry of Finance is synthesizing opinions of units on the draft Decree. The Ministry of Finance will study and synthesize opinions of the Vietnam Fertilizer Association as well as ministries, branches and localities to submit to the Government a plan on export tax rates for fertilizers accordingly.