On 19 March 2020, Jiangsu Changqing Agrochemical Co., Ltd (Jiangsu Changqing) answered investors question about what influence does the increase of rebate rate for export tax by Ministry of Finance on the Company.
Jiangsu Changqing said that the company’s export of its original drug products is currently taxed at 9% (VAT) with the export tax rebate rate of 9%, while the company’s export of most products is currently taxed at 9% with the rebate rate for export tax of 6%.
According to the latest announcement released by Ministry of Finance, the rebate rate for export tax for the company’s pesticide formulations will increase to 9% after 20 March, which is beneficial to the company’s profits gaining from exporting preparation products.
However, due to the small volume of pesticide formulations exported Jiangsu Changqing, the adjustment of the rebate rate for export tax will have no significant impact on the company’s operating performance.
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