Effective April 1, 2026, the export rebate adjustment policy jointly issued by the Ministry of Finance and the State Taxation Administration has officially taken effect.
The policy, which completely cancels export rebates for over 20 pesticide technical products, covers glufosinate-ammonium, glufosinate-P (glufosinate-ammonium P), acephate, fosetyl-aluminium, malathion, ethephon, flubendiamide, benzobicyclon, and sethoxydim, among others.
For the pesticide industry, this move represents far more than a routine fiscal adjustment. It sends a strong industrial policy signal, marking the end of the traditional model that traded environmental costs for export dividends and ushering in a new era of industrial value reconstruction centered on “green” principles.
Balancing multiple policy objectives
Behind the policy lies a careful balancing of multiple objectives. Domestically, it aligns with agricultural non-point source pollution control and food safety assurance, representing a concrete implementation of the “lucid waters and lush mountains” philosophy in the agricultural chemistry sector. Internationally, major markets such as the European Union are imposing increasingly stringent pesticide residue standards, and the export space for traditional high-toxicity products has already been narrowing. The early adjustment of export policies helps avoid potential future trade barriers while compelling domestic producers to upgrade proactively.
Short-term pain, long-term gain
As industry insiders note, short-term pain is inevitable. Companies that rely heavily on traditional pesticide varieties for export will face rising costs and declining competitiveness, and the industry landscape is likely to undergo a significant reshuffling. However, in the long run, this is a necessary “weaning” process. It recalibrates resource allocation, incentivizes companies to increase R&D investment in emerging areas such as biological pesticides and low-toxicity, high-efficiency formulations, and drives a fundamental shift from volume-based competition to quality-based competition.
A mirror of China’s manufacturing transformation
Overall, this policy adjustment serves as a mirror reflecting the general logic of China’s manufacturing transformation and upgrading. As environmental protection, health, and sustainable development become global consensus, previous support policies must evolve accordingly. For the pesticide industry, losing the protective cover of tax rebates may be painful, but it is also the beginning of transformation. Going forward, those who can take the lead in green innovation will gain a decisive competitive advantage in the global marketplace.
