Circular No. 08/TC-TNVT guiding the subsidization of iodized salt (Iodas) prices for ethnic minorities in mountainous regions under social policy.

CIRCULAR OF THE MINISTRY OF FINANCE

Guidelines for subsidizing iodized salt according to

social policies for ethnic minorities in mountainous regions

Implementing Directive No. 65/HĐBT dated May 12, 1989 of the Council of Ministers on addressing urgent economic and social issues for mountainous provinces; after reaching consensus through discussions with relevant sectors, the Ministry of Finance provides specific guidelines on subsidizing iodized salt sold to ethnic minorities in mountainous regions as follows:

I. OBJECTS, BASIS FOR CALCULATING SUBSIDIES AND AMOUNT OF SUBSIDIES

1. Objects eligible for subsidy consideration: All units and enterprises assigned by ministries, sectors, and localities to produce and trade iodized salt to implement state socio-economic policies for mountainous provinces shall be eligible for iodized salt subsidies.

2. Basis for subsidies.

a) For the production stage, the State only considers subsidies for reasonable production costs after deducting the value of regular salt and PF plastic granules for packaging, (KI0₃) provided by UNICEF.

b) For the distribution stage, the State provides subsidies for the difference between the reasonable cost price of iodized salt delivered to the second-level supply points in mountainous provinces and the regular salt price set by the State for sale to mountainous provinces (as stipulated in Section 9 on commodity circulation in Directive No. 65-HĐBT).

3. Amount of subsidies:

a) For the production stage

The amount of subsidy is determined based on the reasonable necessary costs as outlined in point a, Clause 2 above, multiplied by the actual quantity of iodized salt consumed for producing one ton of iodized salt.

b) For the distribution stage:

The amount of subsidy is the price difference of one ton of iodized salt as directed in point b, Clause 2 above, multiplied by the actual quantity of salt transferred to the second-level supply points in mountainous provinces.

II. SOURCES OF FUNDS AND METHODS OF SUBSIDY

The funds for subsidizing iodized salt under social policies are borne by the state budget (central and local budgets) according to the current system of budget management levels.

For units under local management, the Department of Finance directly approves and balances them into the local budget.

For iodized salt production units under the Salt General Corporation - Ministry of Internal Trade, the Ministry of Finance approves the subsidy through the General Corporation.

To ensure working capital for production units, the state budget temporarily subsidizes approximately 80% of the quarterly plan and will settle accounts based on the actual quarterly and annual consumption figures.

III. ESTABLISHING PLANS AND SETTLING SUBSIDY ACCOUNTS FOR IODIZED SALT

1. Plan establishment: To have a basis for calculating state budget revenue and expenditure plans, ensuring sufficient revenue sources to cover subsidy expenditures, the supervisory authorities of iodized salt production and trading units must compile annual subsidy plans (including calculation bases) and quarterly plans for subordinate units to submit to financial supply agencies (the Salt General Corporation - Ministry of Internal Trade submits to the Ministry of Finance; units under local management submit to the Department of Finance). The deadline for submitting the annual plan is no later than October 31 of the previous year; quarterly plans must be submitted before the end of the month preceding each quarter.

2. Settlement of subsidies: In addition to the annual settlement report, quarterly subsidy settlements for iodized salt must also be conducted by supervisory authorities based on the review and approval of subordinate unit reports and submitted to the same-level financial agency no later than the twentieth day of the first month of the following quarter (for quarterly settlements) and no later than January 30 of the following year (for annual settlements).

For iodized salt production and trading units under central management located in local areas, their settlement reports must include confirmation of the actual quantity of iodized salt consumed, the basis for subsidy calculations, and the subsidy level from the Department of Finance (State-owned Enterprise Revenue Collection Bureau and Enterprise Financial Management Division).

The same-level financial agency reviews the settlement, determines a reasonable subsidy level, and either provides additional subsidy amounts or reduces the next quarter's plan by the excess amount already subsidized according to the approved settlement.

IV. IMPLEMENTATION

This Circular takes effect from the date of issuance and applies to iodized salt production and trading tasks starting from October 1, 1989. Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance for study and resolution./.