JOINT CIRCULAR No. 01-TT-LB ON THE PAYMENT OF FUNDS FOR THE PURCHASE AND SALE OF RICE AND OTHER GRAINS AS AGRICULTURAL TAX TO THE STATE BUDGET

 JOINT CIRCULAR

Regarding the payment for purchasing and selling rice and other foodstuffs from agricultural tax to the state budget

In recent times, the payment for purchasing and selling rice and other foodstuffs from agricultural tax between financial agencies and foodstuff agencies at localities to pay into the state budget has been carried out according to Circular No. 44-TT-LB dated November 23, 1959, jointly issued by the Ministry of Finance and the Ministry of Commerce, and Circular No. 03-TT-LB dated May 5, 1961, jointly issued by the Ministry of Finance, the State Bank, and the Directorate General of Rations. However, since the 1963 crop season, the Council of Ministers decided on Resolution No. 164-CP dated October 31, 1963, adjusting prices for purchasing foodstuffs, so it is deemed necessary to supplement and specify the previously established prices and payment procedures to be consistent with the current situation.

Below are some main principles for the payment for purchasing and selling rice and other foodstuffs from agricultural tax collected by the foodstuff sector from the 1963 crop season as follows:

1. On prices for payment between Foodstuff and Finance:

Agricultural tax only collects the best quality standard rice at localities and must ensure dry, mature, clean, and good quality standards. Therefore, the price for payment for purchasing and selling agricultural tax rice between finance and foodstuff agencies to pay into the state budget is the price of first-grade standard rice as defined by the Directorate General of Rations at localities. In areas with two price zones, the rice collected in which zone will be paid according to the price of first-grade standard rice in that zone.

Specifically, in certain special cases, the payment will be made as follows:

a) For places severely affected by natural disasters, causing the quality of rice in an entire region or cooperative to be very poor such as: sprouted rice, muddy rice, mixed with many bad grains... The administrative committees at all levels shall mobilize cooperatives and farmers to lend or exchange good rice to pay taxes. In cases where cooperatives and farmers cannot borrow or exchange good rice to pay taxes, the provincial administrative committee must review these cases. If the actual situation matches the above, they may decide to allow the payment of taxes with the aforementioned inferior types of rice. When entering the warehouse, the Finance Department, the Foodstuff Department of the district, and representatives of the commune (where the tax is paid) must prepare a record detailing quantity, quality, proposed price, and report to the district and province. The price for paying this rice to the budget will be determined by the Provincial Finance Office and the Provincial Foodstuff Office based on the opinions of the district administrative committee and the actual quality of the rice, then reported to the provincial administrative committee for approval.

b) Cooperatives and individual farm households that only produce low-priced rice varieties such as broken rice, cracked rice, immature rice, and small rice, and do not produce any better quality rice, can pay taxes with these types of rice, but must ensure the best quality standard (first grade) and must be inspected and confirmed by the district administrative committee, and approved by the provincial administrative committee. The price for paying this rice to the budget is the first-grade price of each type of rice mentioned.

c) Specifically, for high-value rice varieties (such as glutinous rice, fragrant rice, sticky rice), and corn... if cooperatives and individual farm households pay taxes with these, the foodstuff stores collect the correct amount according to the tax level assigned, then based on the first-grade standard rice price and the prices of the aforementioned rice and corn varieties, immediately refund the difference in money to the taxpayer after weighing and receiving. When the Provincial Finance Office and the Provincial Foodstuff Office settle with the budget, they will do so according to the first-grade standard rice price. Due to this settlement method, from now on, in statistics and reports on collecting agricultural tax, the correct amount of corn must be recorded, without converting corn into rice, and units paying taxes must store the declared stable amount of corn according to the spirit of the central and provincial assignment. Specifically, in some mountainous provinces where glutinous rice is commonly produced locally, taxes are paid with glutinous rice and there is no refund of the price difference.

d) In some localities where taxes are paid with dried sweet potatoes or cassava slices instead of money, the foodstuff stores base the calculation on the quality and price set by the Directorate General of Rations in that area, convert it into money, issue a receipt to the taxpayer, and report to the Provincial Finance Office and the Provincial Foodstuff Office. The Provincial Finance Office and the Provincial Foodstuff Office will base their settlement and payment to the budget on this documentation. These sweet potatoes and cassava are outside the tax payment level declared stable in terms of rice and corn.

2. On payment procedures:

To simplify unnecessary paperwork and to facilitate faster payments into the state budget to meet the timely needs of the state's expenditures, the payment process should be conducted as follows:

a) The Provincial Finance Office and the Provincial Foodstuff Office must directly oversee the payment process, receiving reports on warehouse entries and making payments accordingly. Based on the amount of rice and corn entered into the warehouse, temporary payments are made to the budget. The latest payment period is once every five days. In cases where the entry data of the two offices differ, both offices will confirm the most accurate data and make payments based on that data. The Provincial Finance Office bases the amount paid and, together with the banking agency, distributes it to the central budget, communal budget, and provincial budget according to the prescribed adjustment ratio.

b) To ensure good monitoring of collection and payment, the District Finance and Foodstuff Departments have the responsibility to quickly and accurately report warehouse entry data to the provincial vertical sectors, maintain complete records of collection results, and properly keep all receipts and invoices for final settlement with the province after each tax collection period.

c) After the end of each tax collection period, the Provincial Finance Office and the Provincial Foodstuff Office base their final settlement and payment of the purchase and sale of rice and other foodstuffs from agricultural tax on the documents and settlements of the districts, ensuring full payment to the budget, and reporting the settlement to the Ministry of Finance and the Directorate General of Rations within two months after the completion of the tax collection.

To implement agricultural tax collection in accordance with policy, ensure fair and reasonable contributions from the people, strengthen grain forces for the State, prevent loss of agricultural tax revenue, and ensure the implementation of payments is carried out well, the Ministry of Finance and the General Grain Administration propose that the administrative committees of regions, provinces, and cities need to pay closer attention to strengthening strict leadership in agricultural tax collection work, specifically proposing:

- Strengthen political education, mobilize the masses to fulfill their duties in making full contributions to the State, especially ensuring quality standards as stipulated in the Agricultural Tax Regulations. In conjunction with education and stabilizing grain obligations, clearly assign tasks to cooperatives and individual farming households to pay taxes using the main types of rice and corn produced locally and must be of the best quality. Types of rice and corn inferior to standard white rice and corn will not be subject to agricultural tax. The phenomenon of reserving good rice and corn for consumption or sale and paying taxes with inferior rice and corn must be firmly eliminated.

- Enhance the sense of responsibility of leaders and cadres at the district and commune levels in tax collection work; firmly overcome the mentality of prioritizing quantity over quality standards.

- Closely lead and regularly inspect and urge local finance and grain sectors to collect quickly, fully, settle payments promptly, and strictly comply with this Circular.

This Circular takes effect from the 1963 harvest season and replaces Circular No. 44-TT-LB dated November 23, 1959 issued jointly by the Ministry of Finance and the Department of Internal Trade. Circular No. 03-TT-LB dated May 5, 1961 issued jointly by the Ministry of Finance, the Bank, and the General Grain Administration continues to be implemented.