Egypt shifts nitrogen fertiliser export tax to percentage based levy
The new tax system links export duties to market prices while exempting high grade ammonium nitrate.
EGYPT – Egypt has changed the way it taxes nitrogen fertiliser exports, replacing its fixed export levy with a percentage based system as the country responds to changes in the global fertiliser market.
A decision published in Egypt’s Official Gazette on June 25 states that the government will now charge a 10% export duty on the free on board (FOB) invoice value of all nitrogen fertiliser exports instead of the previous fixed charge of US$90 per metric tonne. The new rules also exempt pure ammonium nitrate with a nitrogen content above 34.2% and shipments sent to productive enterprises operating in Egypt’s free zones.
The change replaces the flat levy introduced in May and links the export tax more closely to market prices, which have dropped since reaching their highest level in mid April. The move comes as fertiliser markets continue to face pressure from supply concerns and changing trade conditions.
According to the World Bank’s April Commodity Markets Outlook, global fertiliser prices could increase by more than 30% in 2026 because of conflict related disruptions in the Middle East and shipping risks around the Strait of Hormuz.
Egypt remains an important supplier in the global fertiliser market. Data from LSEG ranks the country as the world’s seventh largest exporter of nitrogen fertilisers, making any policy change on exports important for international buyers and producers.
The updated tax system may also give exporters more flexibility when prices fall. Under the previous fixed levy, exporters paid the same amount regardless of market conditions. By using a percentage based duty, the government ties the tax directly to the value of each shipment.
The exemption for high grade ammonium nitrate and supplies destined for productive enterprises in Egypt’s free zones also keeps selected exports outside the new tax system. This approach allows the government to maintain support for specific industrial activities while applying the revised levy to most nitrogen fertiliser exports.
The latest policy comes as governments and fertiliser producers continue to monitor price movements and trade flows across global markets. With uncertainty still affecting supply chains and shipping routes, changes in export policies could play a bigger role in shaping fertiliser trade during the rest of the year.
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