CIRCULAR

Regulations and guidelines for collecting and remitting incentives to local budgets regarding tobacco surrendered to the central government

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The Government Council issued Decision No. 313-CP on October 1, 1980 concerning the state's unified operation of the tobacco trade. Article 6 of the Resolution states that "The local budget where tobacco is surrendered to the central government shall receive revenue equal to 50% of the total value of the surrendered tobacco (based on purchase price), of which 50% shall be allocated to the budgets of counties and villages growing tobacco."

The Ministry of Finance has established and provided specific guidance on the system for collecting and remitting incentives to local budgets regarding tobacco surrendered to central state-owned enterprises as follows:

I. SYSTEM FOR REMITTING BETWEEN CENTRAL STATE-OWNED ENTERPRISES AND LOCAL BUDGETS WHERE TOBACCO IS SUBMITTED:

a) Objectives for collection and remittance:

The object of collection is the local budget where tobacco is surrendered to central state-owned enterprises.

The objects of remittance are central tobacco processing enterprises and central tobacco export purchasing companies.

Central tobacco processing enterprises and central tobacco export purchasing companies have the responsibility to remit to the local budget where tobacco is surrendered. The State Bank branch in the county where tobacco is surrendered bases its allocation of collected funds on payment submission forms, allocating 50% to the provincial budget and 50% to the county budget, recorded under item 75, category 2 in the national budget's "Revenue from encouraging the surrender of agricultural products to the central government."

For local tobacco processing enterprises that purchase tobacco from within-province entities for processing, they are not required to remit this incentive to the local budget.

b) Basis for calculating the amount to be remitted:

The basis for calculating the amount to be remitted to the local budget is the quantity of tobacco received by central tobacco processing enterprises or central tobacco export purchasing companies from state-owned farms in the locality, cooperatives (according to signed contracts), or county purchasing agencies.

Tobacco received by central tobacco processing enterprises from state-owned farms in the locality that are transferred by the central state-owned farm does not require remittance of this revenue incentive.

The price for calculating the amount to be remitted to the local budget is based on the purchase price stipulated for each grade of tobacco as per Decision No. 127-VGNN dated October 24, 1979 and Decision No. 152-VGNN dated December 6, 1979 of the State Price Commission.

Example: The Thang Long Tobacco Processing Enterprise receives 100 tons of tobacco from the Ba Vi County Purchasing Agency, including purchases at the directed price and incentive price, comprising 80 tons of Grade I tobacco and 20 tons of Grade II tobacco. Therefore, the amount that the Thang Long Tobacco Enterprise must remit to the Ba Vi County local budget is 415,000 dong, calculated as follows:

c) Remittance system:

Each time a tobacco processing enterprise or tobacco export purchasing company receives tobacco from a county purchasing agency or directly from a state-owned farm in the locality or cooperative, when paying for the goods to these economic organizations, they must simultaneously issue a payment submission form to immediately transfer the remittance to the local budget at the State Bank branch in the county where the tobacco is surrendered to the enterprise. On the payment submission form (four copies), it should clearly state: remittance to the local budget, under item 75, category 2 "Revenue from encouraging the surrender of tobacco to the central government" of the county purchasing agency... (or of state farm X, of cooperative Z) according to tobacco delivery receipt number... on date...

II. REGULATIONS ON THE PROPORTION ALLOCATED TO THE COMMUNE BUDGET AND THE METHOD OF PAYMENT TO THE COMMUNE BUDGET.

a) Proportion allocated to the commune budget :

To correspond with various sources of revenue related between the state budget and the commune budget, enhancing the responsibility of commune authorities in mobilizing cooperatives and private individuals to grow tobacco and fulfill their obligation to sell tobacco products to the state, the proportion allocated to the commune budget is 15% of the total incentive amount based on the quantity of tobacco surrendered and sold by cooperatives and private individuals in the commune to the central government.

Tobacco surrendered by local state farms (provincial or county state farms) to the central government does not require allocation of the incentive proportion to the commune budget.

b) Method of payment:

At the end of each month, the People's Committee of the commune compiles the quantity of tobacco classified by grade from cooperatives and private individuals in the commune that was sold and submitted to central state-owned enterprises or county purchasing agencies for submission to the central government, submitting it to the County Financial Pricing Board for settlement. The County Financial Pricing Board issues a budget expenditure order to pay the commune budget 15% of the tobacco surrender incentive (recorded in the county budget, item 68, category 4 under the "Encouragement of commune budget for surrendering agricultural products").

To strengthen the management of tobacco procurement for surrender to central state-owned enterprises, ensuring the revenue incentive for local budgets, every quarter or crop season, the County Financial Pricing Board has the duty to compile procurement plans according to contracts or state plans and the actual quantity of tobacco surrendered directly to central state-owned enterprises or county purchasing agencies by tobacco-growing entities in the county, comparing it with the revenue incentive received by the local budget, reporting the results to the County People's Committee and the Department of Finance; the Department of Finance aggregates and reports to the Ministry of Finance; the Department of Finance bases its actions on the aggregated report, studies and analyzes, and performs the task of supervising county purchasing agencies to fully implement procurement and surrender plans, assisting County Financial Boards in settling accounts with central state-owned enterprises, ensuring the revenue incentive for local budgets.

The Ministry of Foodstuffs, the Ministry of Foreign Trade, People's Committees of provinces and cities, Finance Departments and State Bank branches in provinces and cities where tobacco cultivation is widespread are hereby requested to promptly implement this directive./.