Sinofert sees limited impact after increase in urea export levy

Sinofert Holdings, the mainland's largest fertiliser importer and distributor, said the recent rise in fertiliser export tax would not have a big impact on its operation.

Chief financial officer Zhang Baohong said after the company's special shareholders' meeting that the firm's exports accounted for less than 10 per cent of its sales volume.

'The tax rise was to secure domestic supply and promote price stability. The government does not want to see huge price volatility, so there is seasonality in this tax,' he said.

The Ministry of Finance on December 21 published changes to the country's import and export taxes, which will take effect on January 1.

The export tax on urea has been set at 30 per cent for next year's first quarter, 35 per cent for the second and third quarter, and 25 per cent in the fourth quarter. This compared with 30 per cent in this year's first three quarters and 15 per cent in the fourth quarter.

According to General Administration of Customs figures, the nation's urea exports soared 249.4 per cent in the first 10 months of the year to 2.81 million tonnes.

Brokerage China International Capital Corp projected in a research report for the full-year that export volume would exceed five million tonnes, because lower fourth-quarter export taxes stimulated export.