Imposing 5% VAT on fertilisers will bring difficulty to farmers
Imposing 5% VAT on fertilisers will bring difficulty to farmers
Some National Assembly (NA) delegates are concerned that imposing value added tax (VAT) on fertilisers, and machinery and equipment for agricultural production, will create difficulty for farmers.
Fertiliser production at the Bình Điền fertiliser company. — VNA/VNS Photo |
At a meeting of the National Assembly Standing Committee on August 14, chairman of the NA's Committee for Finance - Budget, Lê Quang Mạnh, said that after it was submitted at the 7th session of the 15th National Assembly opened on May 20, there are two views on imposing value added tax (VAT) on fertilisers and agricultural machinery and equipment.
Many delegates propose keeping the current regulations on not to impose VAT. If 5 per cent VAT is added to fertilisers, farmers will be greatly affected because prices will increase, leading to higher cost of agricultural products.
Some other lawmakers agree with imposing VAT on fertiliser products. They said that fertiliser products in the non-VAT taxable category adversely affected the domestic fertiliser production industry in the past 10 years.
Currently, there is no VAT on fertilisers, meaning exporters do not have to pay VAT and domestic producers cannot deduct input VAT.
This results in higher prices of domestically produced fertilisers than imported.
Mạnh said that the majority in the Standing Committee of the Finance and Budget Committee agree with the first view to maintain zero VAT rate for fertiliser.
Meanwhile, the Ministry of Finance, who compile the draft, has kept the proposal on imposing 5-per-cent VAT on fertiliser as the draft presented at the 7th session of the 15th National Assembly.
The Finance and Budget Committee will finalise this draft based on the opinions from the National Assembly's Standing Committee.
