Li Guozhang, deputy to the National People's Congress and Hubei Xingfa Chemicals Group Co.Ltd(600141) Chairman: it is suggested to add tax items to some exported phosphorus chemical products and increase the export tax rebate rate

Under the global energy transformation, the phosphorus chemical industry has ushered in a strong business cycle. Although China has become a big country in phosphorus chemical industry, it is not a strong country in phosphorus chemical industry.

On March 10, Li Guozhang, deputy to the National People's Congress and Hubei Xingfa Chemicals Group Co.Ltd(600141) chairman of the board of directors, said in an interview with the 21st Century Business Herald reporter that it was suggested to add tax items to some exported phosphorus chemical products and increase the export tax rebate rate.

China's phosphorus chemical enterprises are constantly increasing technological research, developing low-cost and high value-added products, and trying to narrow the gap with multinational giants. However, there has been no tax rebate policy for the export of some high-end phosphorus chemical products, and some products do not even have a separate commodity code. The products are exported at full caliber cost, which weakens the competitiveness of the international market.

Li Guozhang suggested that the tariff numbers of some wet electronic chemicals (electronic grade phosphoric acid, electronic grade sulfuric acid, electronic grade hydrogen peroxide, electronic grade hydrofluoric acid, etc.) and some food additives (food additive sodium pyrophosphate, food additive disodium dihydrogen pyrophosphate) should be added first. At the same time, the export tax rebate rate corresponding to the tax rate of wet electronic chemicals, sodium hypophosphite, food additive sodium pyrophosphate, food additive disodium dihydrogen pyrophosphate and glyphosate technical drugs shall be given.

Wet electronic chemicals mainly include electronic grade phosphoric acid, electronic grade sulfuric acid, electronic grade hydrogen peroxide, electronic grade hydrofluoric acid, etc. Taking electronic grade phosphoric acid as an example, it is the most cutting-edge product in the phosphorus chemical industry. It is widely used in cleaning and etching in the manufacturing process of integrated circuits and display screens. At present, the production capacity of electronic grade phosphoric acid put into operation in China is about 60000 tons / year, and began to be exported overseas.

However, in the international market, the terminal price of electronic grade phosphoric acid is about 18000 yuan / ton. However, due to the absence of tariff number and the imposition of 13% value-added tax, it is difficult for China's export of electronic grade phosphoric acid to have a competitive advantage in price. From 2019 to 2021, the national export of electronic grade phosphoric acid was 12100 tons, 14200 tons and 14500 tons respectively, with a total amount of about US $68.05 million, which was almost at a standstill.

Electronic grade hydrogen peroxide and electronic grade hydrofluoric acid are used in integrated circuit cleaning and etching process. They are the key raw materials of electronic grade etching solution for formula products. The production capacity in China reaches 120000 tons / year and 70000 tons / year respectively. These two kinds of products are hardly exported, and it is difficult for wet electronic chemicals to go international.

Li Guozhang said that in the international market competition of the normalization of epidemic prevention and control, adding tax items to some exported phosphorus chemical products and increasing the export tax rebate rate can promote enterprises to optimize the industrial structure, improve the scientific and technological content of products, increase the added value of products, and shift from simple quantitative competition to scientific and technological and quality competition.

In addition, in view of the continuous decline in investment in China's mineral resources exploration and the sharp contraction of newly established exploration rights projects in prospecting and exploration, Li Guozhang said that at present, the number of newly established exploration rights has decreased sharply, and the single digit of newly established exploration rights in geological prospecting is extremely abnormal every year, which directly affects the guarantee ability of national mineral resources.

Li Guozhang suggested that first of all, increase financial investment to promote strategic mineral prospecting. Secondly, improve the management policy of geological prospecting and unblock the channels of social capital investment in mineral exploration. At the same time, accelerate the activation of high-quality stock prospecting projects. It is suggested that the Ministry of natural resources clarify policies and equity relations as soon as possible, eliminate the factors hindering strategic prospecting, promote the fund projects to the market as soon as possible and regain the vitality of the prospecting right market.

In addition, support state-owned mining enterprises to become bigger and stronger and consolidate the cornerstone of national resources and energy security. Adhere to resource market allocation, concentrate advantageous resources on advantageous enterprises, establish a number of key enterprises with the integration of mining, beneficiation and processing of mineral resources, industrial development agglomeration and high-end industrial structure, and consolidate the cornerstone of national resource and energy security.

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