Fertilizer suppliers request farmers to request VAT bill

Fertilizer suppliers emphasize that the VAT policy implemented from January 1 is not applicable to chemical fertilizers such as Urea, MOP, and TSP currently sold in the market.

The reason for this is that the fertilizers currently sold in the market were imported before the implementation of the VAT policy and no VAT has been paid by the relevant companies.

A discussion regarding this matter was held at the Ministry of Agriculture this morning (04). In the discussion chaired by the Minister of Agriculture and Plantation Industries, Mr. Mahinda Amaraweera, the Minister requested the companies not to charge VAT for the chemical fertilizers currently sold in the market.

The Secretary of the Ministry of Agriculture, Mr. Janaka Dharmakeerthy, Mr. Dr. Jagath Perera, Chairman of the two government-owned fertilizer companies, as well as representatives of several fertilizer import companies participated in this discussion.

At present, the harvesting activities of paddy cultivation in the 2023/24 Maha season have started. Therefore, there is currently some reduction in the sale of chemical fertilizers. But currently the fertilizers in the market have been imported under the old prices and no VAT has been charged on the import of the fertilizers.

Therefore, the representatives of the fertilizer companies requested the minister to inform all the farmers to ask for a bill for the VAT if any company charges VAT for the fertilizers currently sold in the market.

Also, although VAT should be levied in relation to pesticides, the pesticide distribution company representatives also stated that VAT should not be added to the basic prices as the cost would be covered by the profit from the sale of pesticides.

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