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China to restore VAT on fertiliser imports and sales
August, 11th 2015

China will reintroduce a value added tax rate of 13 per cent on fertiliser imports and sales from Sept 1, as it attempts to curb widespread overuse, the country said on Tuesday.

Fertilisers in China have been subject to favourable tax policies since 1994 in order to guarantee supplies and help boost grain output, but the system had been subject to abuse in recent years, the Ministry of Commerce said in a statement.

China is aiming to bring growth in chemical fertiliser use to zero by 2020 in an effort to ease pollution problems in its vast countryside. Excessive fertiliser use has been associated with damaging algae blooms and soil acidification.

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