17 April 2008 09:51 [Source: ICIS news]
LONDON (ICIS news)--China has formally announced a 100% increase on export duties for all chemical fertilizers, in a bid to ensure domestic supply and prevent further price rises, a statement issued by the Finance Ministry said on Thursday.
After over a week of speculation, the State Council formally approved the additional duty on the existing fertilizer tax in response to the rapid rise in exports, the statement said.
This will mean that export of fertilizers such as urea and diammonium phosphate (DAP) and monoammonium phosphate (MAP) will be subject to a total export tax levy of 135%, effective 20 April to 30 September 2008.
This tax hike was needed, the statement said, to "guarantee this year ploughs in the spring" and it "builds the foundation for the whole year grain harvest".
Rumours of the tax increase hit the urea market last week, prompting global urea prices to climb notably. Before the announcement, the key benchmark ?xml:namespace>
($1 = €0.63)
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