At the press conference held by the State Council Information Office on February 22, Chen Xiwen, deputy director of the Central Financial Leading Group Office, said that the central government will continue to implement a “preferential + price limit†policy for fertilizer-related agricultural industries to ensure that farmers increase production and income.
At this press conference, Chen Xiwen made an interpretation of the CPC Central Committee and the State Council's "Several Opinions on Promoting the Construction of a New Socialist Countryside," namely "Document No. 1". He said that this year’s “Number One Document†proposes that the goal, content, and method of promoting the construction of a new socialist countryside can be summarized in five aspects: First, rural productive forces must be developed, and second, the living standards of farmers must be improved. Rural infrastructure has been improved. Fourth, rural social undertakings have been developed. Fifth, grass-roots democracy and political construction must be promoted.
When reporters on how to solve the problem of rising prices of agricultural production materials such as fertilizers and pesticides due to rising raw materials and other issues that affect farmers’ income increase, Chen Xiwen said that as we all know, international oil prices have been rising in recent years, affecting oil, gas, etc. Agricultural materials products made of raw materials, especially the rising prices of chemical fertilizers and pesticides, have affected the income of farmers. In 2006, while the agricultural tax was completely and completely eliminated across the country, the state implemented a “preferential + price limit†policy on the fertilizer industry and continued to temporarily exempt the urea product value-added tax. The implementation of these policies has played an important role in regulating the prices of agricultural products, but it cannot completely solve the problems fundamentally. Although the value-added tax for urea products is exempted, there are still a number of tax types that chemical fertilizer manufacturers need to bear, thus increasing the production costs of fertilizers, pesticides and other agricultural products. According to statistics, the annual production cost of about 60 billion yuan is passed on to farmers through the price of the product. For various reasons, the peasants cannot ultimately receive the tax rebate through the bills themselves. At present, relevant departments are stepping up efforts to formulate relevant policies to solve the problem of farmers increasing production and income due to rising prices of fertilizers and other agricultural products.
It is understood that in 2006, the state implemented a “preferential + price limit†policy for the fertilizer industry, which mainly included continuing to promote the production and circulation of chemical fertilizers; continuing to implement preferential tariffs for the production and use of fertilizers; continuing to temporarily exempt the value-added tax for urea products; and continuing to rail transportation to fertilizers. Free railway construction funds, etc.
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