Aug. 16, 2019
The Chinese Ministry of Agriculture and Rural Affairs recently implemented various business policies and tax incentives to support the development, promotion and application of biopesticides.
To assist pesticide manufacturers in developing biopesticides, the ministry will facilitate the process of biopesticide registration. Based on the features of biopesticide varieties, testing requirements and trial duration can also be reduced, and VAT can be lifted by the Ministry of Finance.
Over the past year, China has continued to lower VAT, and its pesticide tax rate has been reduced from 13% to 9%, a 30% decrease. Furthermore, the research expenditure of manufacturers is eligible for a 75% reduction, on top of pre-tax deductions.
The Ministry of Agriculture and Rural Affairs will also establish a green biopesticide registration channel and a manufacturer-researcher alliance, to support the promotion and application of biopesticides. It also plans to organise 300 green prevention and control demonstration counties over three years for the same purpose.
In recent years, the Ministry of Agriculture and Rural Affairs has offered financial support to facilitate the promotion and adoption of green prevention and control initiatives. A yearly sum of Yuan800 million is allocated to the prevention and control of diseases and pests, with a focus on unified control and green control initiatives. With regards to promoting low-toxicity biopesticides, a sum of Yuan10 million is allocated annually.