The special tariff imposed by the state on chemical fertilizers has curbed the export of domestic urea and phosphate fertilizers in the short term, which has reduced the profitability of many nitrogen fertilizers and phosphate and compound fertilizer companies. However, resource-based potash fertilizer companies have become fortunate. As the supply of potash fertilizer in the domestic market is in short supply and prices are rising, enterprises have obtained high profits. Resource-based potash companies such as Lop Nur Potash, Salt Lake Potash, and others enjoy the lucrative profits brought by price increases. To this end, industry sources suggest that the state should levy "profiteering tax" on monopolistic potassium salt production enterprises.
“Our association has already reported to the National Development and Reform Commission and other relevant departments the problem of resource-based potash fertilizer plant profits, and the relevant departments are now discussing the solution. The huge profits generated by the soaring price of potash fertilizer should flow to the treasury and should not be owned by the production companies alone.†Wei Guangcheng, president of the Salt Industry Association's Potassium Industry Branch, said in an interview with reporters recently.
The product of resource-based potash fertilizer companies that generate huge profits is mainly potassium chloride. "The cost of producing 1 ton of potassium chloride by these companies is about 800 to 1,000 yuan. According to the current ex-factory price of 3,500 yuan (ton price, the same below), one ton of potassium chloride can make a net profit of 2,500 yuan, and the profit can reach 250%. "The head of the potassium sulfate producer Qing Shang Chemical (Tianjin) Co., Ltd. told reporters.
It is understood that the main reason for the increase in prices of homemade potassium chloride is the promotion of the increase in the price of imported potassium chloride. The price of domestically produced potassium chloride of similar products is about 5% lower than that of imports. At present, the import of potassium chloride has been close to 5,000 yuan, while the current ex-factory price of potash potassium chloride in the salt lake is 3,500 yuan, and the annual average price is likely to exceed 4,500 yuan. In addition, Canada Potash Corp. has reduced its export of potash fertilizer by 1.5 million tons this year, which to a certain extent has also provided support for the high prices of domestic potash fertilizers.
“As raw material prices have skyrocketed, we have been unable to produce at full capacity. Last year we produced more than 90,000 tons of potassium sulfate. This year we are only preparing to produce 230,000 tons.†Manager Liu of Hebei Shijiazhuang Hehe Chemical Fertilizer Co., Ltd. said with resignation.
A person in charge of the Shandong Lufeng Potash Fertilizer Plant also spoke of the fact that due to the soaring price of upstream raw materials, the raw materials for the production of potassium sulphate, namely sulphuric acid and potassium chloride, reached a price of 5,000 yuan and the ex-factory price was less than 5,400 yuan. Companies are facing huge financial pressure. And even if high-potash potash is produced, farmers will not accept it, and dealers will not be able to purchase it. Companies will not be able to operate normally. Therefore, in order to avoid the formation of a vicious circle and ultimately jeopardize China's food security, it is imperative to impose a "windfall tax" on companies that monopolize the potash resources.
Relevant experts pointed out that the current tax system in China did not fully consider the use of tax policies to conserve resources and protect the environment. The resource tax rate was relatively low. Basically, it was only a mineral resource occupation tax, which did not provide an obvious regulatory effect on the rational use of resources.
“At present, China only charges a resource tax of 0.5-0.8 yuan per cubic meter of potassium salt, and the amount of taxation is too low. Compared to potash fertilizer of 3 to 4 thousand yuan per ton, potassium salt is equivalent to free use. Compared to nitrogen fertilizer and phosphate fertilizer self-sufficiency More than enough, China's potash fertilizer dependence is as high as 75% or more, so the potash resources should be cherished more than once, but the current potassium salt resource tax is too low, which can only encourage enterprises to plunder mining and waste in the current situation of high prices. Potash resources, to obtain huge profits.†said Wei Guangcheng, president of the Potash Industry Branch of China Inorganic Salt Industry Association.
It is understood that the resource tax for Lop Nur potash mineral resources is 0.5 yuan per cubic meter, which is converted into natural brine quantity according to the production of potassium sulfate, and the conversion ratio is 1:100. The Guotou Luoka Company's annual output of 1.2 million tons of potash fertilizer project is scheduled to be commissioned by the end of this year. According to this output, a resource tax of 120 million cubic meters of natural brine shall be collected. Calculated at 0.5 yuan per cubic meter, a total of 60 million yuan in resource taxes shall be paid; An annual output of 1.2 million tons of potassium sulfate is estimated based on the current market price of 4,000 yuan, and sales revenue is about 4.8 billion yuan. It is no wonder that people in the industry say that the current potassium salt resource tax is "nine to zero."
According to international experience, the purpose of collecting "windfall tax" is to return part of the company's excess profits to the government as a public expenditure to benefit the public. At present, the internationally imposed "windfall tax" is mainly oil-based resource-based products. In March 2006, China announced the collection of a “special income tax†on domestically-produced crude oil for oil-extracting enterprises. This is equivalent to the forced “expense taxation†and is an important regulation and control method for redistribution of state revenues. The purpose is to cut high-profit monopoly industries. A piece of profit will be used to subsidize the difficult groups and public welfare industries that are affected by the adjustment of refined oil prices.
People in the industry believe that under the situation where the country adopts various measures to develop food production, the vast majority of resource-based potash fertilizer manufacturers should take more social responsibilities while gaining reasonable profits, so as to benefit the processing of potash fertilizer enterprises for food security in China. Make a contribution.
“Our association has already reported to the National Development and Reform Commission and other relevant departments the problem of resource-based potash fertilizer plant profits, and the relevant departments are now discussing the solution. The huge profits generated by the soaring price of potash fertilizer should flow to the treasury and should not be owned by the production companies alone.†Wei Guangcheng, president of the Salt Industry Association's Potassium Industry Branch, said in an interview with reporters recently.
The product of resource-based potash fertilizer companies that generate huge profits is mainly potassium chloride. "The cost of producing 1 ton of potassium chloride by these companies is about 800 to 1,000 yuan. According to the current ex-factory price of 3,500 yuan (ton price, the same below), one ton of potassium chloride can make a net profit of 2,500 yuan, and the profit can reach 250%. "The head of the potassium sulfate producer Qing Shang Chemical (Tianjin) Co., Ltd. told reporters.
It is understood that the main reason for the increase in prices of homemade potassium chloride is the promotion of the increase in the price of imported potassium chloride. The price of domestically produced potassium chloride of similar products is about 5% lower than that of imports. At present, the import of potassium chloride has been close to 5,000 yuan, while the current ex-factory price of potash potassium chloride in the salt lake is 3,500 yuan, and the annual average price is likely to exceed 4,500 yuan. In addition, Canada Potash Corp. has reduced its export of potash fertilizer by 1.5 million tons this year, which to a certain extent has also provided support for the high prices of domestic potash fertilizers.
“As raw material prices have skyrocketed, we have been unable to produce at full capacity. Last year we produced more than 90,000 tons of potassium sulfate. This year we are only preparing to produce 230,000 tons.†Manager Liu of Hebei Shijiazhuang Hehe Chemical Fertilizer Co., Ltd. said with resignation.
A person in charge of the Shandong Lufeng Potash Fertilizer Plant also spoke of the fact that due to the soaring price of upstream raw materials, the raw materials for the production of potassium sulphate, namely sulphuric acid and potassium chloride, reached a price of 5,000 yuan and the ex-factory price was less than 5,400 yuan. Companies are facing huge financial pressure. And even if high-potash potash is produced, farmers will not accept it, and dealers will not be able to purchase it. Companies will not be able to operate normally. Therefore, in order to avoid the formation of a vicious circle and ultimately jeopardize China's food security, it is imperative to impose a "windfall tax" on companies that monopolize the potash resources.
Relevant experts pointed out that the current tax system in China did not fully consider the use of tax policies to conserve resources and protect the environment. The resource tax rate was relatively low. Basically, it was only a mineral resource occupation tax, which did not provide an obvious regulatory effect on the rational use of resources.
“At present, China only charges a resource tax of 0.5-0.8 yuan per cubic meter of potassium salt, and the amount of taxation is too low. Compared to potash fertilizer of 3 to 4 thousand yuan per ton, potassium salt is equivalent to free use. Compared to nitrogen fertilizer and phosphate fertilizer self-sufficiency More than enough, China's potash fertilizer dependence is as high as 75% or more, so the potash resources should be cherished more than once, but the current potassium salt resource tax is too low, which can only encourage enterprises to plunder mining and waste in the current situation of high prices. Potash resources, to obtain huge profits.†said Wei Guangcheng, president of the Potash Industry Branch of China Inorganic Salt Industry Association.
It is understood that the resource tax for Lop Nur potash mineral resources is 0.5 yuan per cubic meter, which is converted into natural brine quantity according to the production of potassium sulfate, and the conversion ratio is 1:100. The Guotou Luoka Company's annual output of 1.2 million tons of potash fertilizer project is scheduled to be commissioned by the end of this year. According to this output, a resource tax of 120 million cubic meters of natural brine shall be collected. Calculated at 0.5 yuan per cubic meter, a total of 60 million yuan in resource taxes shall be paid; An annual output of 1.2 million tons of potassium sulfate is estimated based on the current market price of 4,000 yuan, and sales revenue is about 4.8 billion yuan. It is no wonder that people in the industry say that the current potassium salt resource tax is "nine to zero."
According to international experience, the purpose of collecting "windfall tax" is to return part of the company's excess profits to the government as a public expenditure to benefit the public. At present, the internationally imposed "windfall tax" is mainly oil-based resource-based products. In March 2006, China announced the collection of a “special income tax†on domestically-produced crude oil for oil-extracting enterprises. This is equivalent to the forced “expense taxation†and is an important regulation and control method for redistribution of state revenues. The purpose is to cut high-profit monopoly industries. A piece of profit will be used to subsidize the difficult groups and public welfare industries that are affected by the adjustment of refined oil prices.
People in the industry believe that under the situation where the country adopts various measures to develop food production, the vast majority of resource-based potash fertilizer manufacturers should take more social responsibilities while gaining reasonable profits, so as to benefit the processing of potash fertilizer enterprises for food security in China. Make a contribution.
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