Ho Chi Minh City, Vietnam – The General Council of Agriculture and Rural Development in Vietnam has suggested imposing a five percent Value Added Tax (VAT) on fertilizers.

This initiative is aimed at assisting local farmers and enhancing the agricultural sector.

The proposal was developed following discussions involving the Vietnam Fertilizer Association, the United States Agency for International Development (USAID), and the Vietnam Tax Consultancy Association.

Implementing this tax could enable local fertilizer manufacturers to invest in new technologies by allowing them to deduct input VAT.

However, imported fertilizers might see a cost increase of five percent due to the absence of input tax deductions.

If enacted, the VAT could result in an estimated increase in state revenue of one point five four one trillion Vietnamese Dong from fertilizer sales.