The new tax rebate cancellation policy released by Ministry of Finance which will be effective from July 15th involved some part of steel products, nonferrous metals and work materials, silver powder, alcohol, maize starch, as well as some plastic/glass/rubber and Chemical products.
Pesticides (Such as: Glyphosate, Dalapon, Tabatrex, chlorfenvinphos, sulfotep) and phosphorus chemicals (Such as: phosphate, polyphosphate, phosphate), as well as basic chemical raw materials ( such as phenols, hydrazine hydrate, and benzene series) are all include in the list. Of these products, all of them used to enjoy tax reimbursement at 5% ~ 17% rates. The whole price level will be directly pushed up.
Let’s focus on the impact of pesticide market caused by this new policy. Beyond any doubt, Glyphosate has now been in the limelight since its tax rebate has dropped down from 9% to a big zero. Especially for those Glyphosate export-oriented enterprises, such as Anhui Huaxing Chemical Industry, Nantong Jiangshan Agrochemical, not to mention Zhejiang Wynca Chemical, things become very tough. Aside from this effect, the prospection of appreciation of RMB and anti-dumping policy has made things worse still. From current situation, chinese glyphosate manufacturers are downwind by the loss of price advantage in the fierce competition with international companies.
On the other side, the cancellation of dimethyl carbate, Dalapon, Hexachloroacetone, Acequinocyl, erbon has considered to have no big influence on export business owe to small export quantity. Since all of these high toxic substances are listed in POPs, we suspect that this policy is a clear signal for the government to forbidden the export and thus the production of high pollution materials and finally lead to the development and application of more environment friendly chemical products.
Ref: http://www.chinapesticide.gov.cn/doc10/10062509.html, http://www.chinapesticide.gov.cn/doc10/10062907.html
By Cherry
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