People's Representative Newspaper organizes a discussion on applying value added tax to the fertilizer industry

Speaking at the seminar, journalist Pham Thi Thanh Huyen - Editor-in-Chief of the People's Representative Newspaper said that recently, according to feedback from domestic fertilizer enterprises, because fertilizer is not subject to value added tax, enterprises are not allowed to deduct input tax for raw materials, machinery and services.

Seminar “Value Added Tax (VAT) on the Fertilizer Industry: From Non-Tax to 5% Tax Rate”. Photo: Khanh Duy

This not only increases fertilizer prices but also causes domestic fertilizer enterprises to lose their competitive advantage compared to imported goods, which are subject to value-added tax deduction in the country of origin. Therefore, in this amendment to the Law on Value Added Tax (VAT), the Government proposes to transfer goods that are inputs for agricultural production, including fertilizers, from being exempt from VAT to being subject to 5% tax.

At the seminar, many delegates said that the VAT issue on fertilizers is related to tens of millions of farmers and businesses directly producing this type of product.

Some delegates suggested applying a 0% tax rate on fertilizers, so that businesses would not suffer losses by not having to pay input tax. "That option would fairly resolve the issue between the State, businesses and people"…

At the recent Seventh Session, the National Assembly gave its first comments on the draft Law on Value Added Tax (amended). One of the contents that many delegates were interested in was the value added tax rate for the fertilizer industry. Some delegates said that it is necessary to carefully evaluate the conversion of fertilizer to a taxable subject with a tax rate of 5%.

Some delegates agreed to tax this item but at a rate of 0% instead of 5% as proposed by the Government. Some other delegates said that a 5% tax rate is appropriate. According to the schedule, the National Assembly will consider and approve the draft Law on Value Added Tax (amended) at the meeting at the end of this year.

Source: https://www.congluan.vn/bao-dai-bieu-nhan-dan-to-chuc-toa-dam-ve-ap-thue-gia-tri-gia-tang-voi-nganh-phan-bon-post303693.html