Regarding the proposal to apply 5% export tax on chemical fertilizers, PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo, Phu My fertilizer manufacturer and trader, stock code DPM), would like to inform believe the following:
According to current regulations:
Group 1: fertilizers with a value of natural resources and minerals plus energy costs below 51% of the product cost, there is an export tax of 0%.
Group 2: fertilizers with a value of natural resources and minerals plus energy costs of 51% or more of the product cost with an export tax of 5%. PVFCCo's urea product belongs to group 2 and has paid 5% tax every time it is exported for many years.
Thus, the Ministry of Finance's submission to the Government to stipulate a uniform export tax rate of 5% for fertilizers, regardless of the proportion of mineral resources in fertilizers, does not affect the production and business activities of the Company. PVFCCo.
In the first quarter of 2022, PVFCCo's factories are operating safely and stably, reaching maximum capacity, and product quality is guaranteed. Total production output reached about 282,000 tons of fertilizers and chemicals of all kinds, a sharp increase compared to the same period in 2021. In which, the most impressive was Phu My NPK with an output of over 41,000 tons, reaching 119% of the quarterly plan. I, an increase of 78% over the same period in 2021. PVFCCo also made efforts to arrange logistics, regulate and make good use of market opportunities, bringing business output to about 346,000 tons of fertilizers and chemicals of all kinds. The main product of Phu My Fertilizer was sold nearly 246,000 tons, reaching 134% of the plan for the first quarter of 2022, up 30% over the same period.
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