Decree No. 12/2016/ND-CP on Environmental Protection Fees for Mineral Extraction

DECREE

Von environmental protection fees for mineral extraction

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Pursuant to the Law on Organization of the Government dated June 19, 2015;

  Pursuant to the Environmental Protection Law dated June 23, 2014;

  Pursuant to the Minerals Law dated November 17, 2010;

  Pursuant to the Ordinance on Fees and Charges dated August 28, 2001;

  At the proposal of the Minister of Finance,on   THE GOVERNMENT

promulgates this Decree stipulating environmental protection fees for mineral extraction. Article 1. This Decree stipulates the objects subject to fees, fee payers, collection rates, methods of calculating fees, and management and utilization of environmental protection fees for mineral extraction.

PART I

GENERAL PROVISIONS

2. The fee-paying entities for environmental protection fees for mineral exploration and exploitation under this Decree are activities of crude oil extraction, natural gas, coalbed methane, metallic minerals, and non-metallic minerals.

Article 2. The objects subject to environmental protection fees for mineral extraction as prescribed in this Decree include crude oil, natural gas, coal gas, metallic minerals, and non-metallic minerals.

This Decree applies to organizations and individuals engaged in mineral extraction activities, state agencies, and organizations and individuals involved in managing and collecting environmental protection fees for mineral extraction.

Article 2. Applicability

ENVIRONMENTAL PROTECTION FEES FOR MINERAL EXTRACTION: LIST, RATES, CALCULATION METHODS, AND MANAGEMENT AND UTILIZATION

Chapter II

Article 3. Rates

Clause 1. The rate of environmental protection fee for crude oil is 100,000 VND per ton; for natural gas and coal gas, it is 50 VND per cubic meter. For natural gas extracted during crude oil extraction (associated gas), the rate is 35 VND per cubic meter.

Clause 2. The framework rate of environmental protection fee for other types of mineral extraction is set out in the attached Framework Rate Table.

Clause 3. The rate of environmental protection fee for incidental mineral extraction is 60% of the corresponding rate specified in the attached Framework Rate Table.

Clause 4. Based on the rates prescribed in the attached Framework Rate Table, the People's Councils of provinces and centrally governed cities (hereinafter referred to as provincial People's Councils) shall decide specifically on the collection rates of environmental protection fees for each type of mineral applicable in their locality, in accordance with actual conditions at different periods.

Article 4. Calculation Method

F = [(Q1 x f1) + (Q2 x f2)] x K

1. The environmental protection fee payable for mineral extraction within a payment period shall be calculated using the following formula:

- Q1 is the volume of overburden removed and discharged during the period of payment (cubic meters);

Where:

In cases where the extracted mineral must be screened, sorted, classified, enriched before sale, or other necessary conversions, the Department of Natural Resources and Environment, in collaboration with the local Tax Bureau, shall submit to the provincial-level People's Council for decision the conversion ratio from finished mineral products to raw mineral quantities for calculating environmental protection fees for each type of mineral consistent with local conditions.

- Q2 is the quantity of raw mineral extracted during the period (tons or cubic meters);

- f1 is the rate of environmental protection fee for the volume of overburden removed: 200 VND per cubic meter;

- f2 is the corresponding rate of environmental protection fee for each type of mineral extracted (VND per ton or VND per cubic meter);

Clause 3. The volume of overburden removed and discharged during the period of payment is determined based on project investment documentation for mining construction works, environmental impact assessment reports, and actual volumes of overburden removed and discharged.

- K is the coefficient for calculating fees based on the method of extraction, including:

+ OPEN-PIT MINING (INCLUDING WATER-BASED MINING SUCH AS TITAN, RIVER SAND AND GRAVEL): K = 1.05;

+ UNDERGROUND MINING AND OTHER MINING METHODS (OIL, NATURAL GAS, NATURAL MINERAL WATER AND OTHER CASES): K = 1.

2. For the quantity of overburden and waste rock removed during coal mining, no fee will be charged until the end of 2017.

The Ministry of Finance shall take the lead and coordinate with the Ministry of Natural Resources and Environment to guide the determination of the volume of overburden removed and discharged (Q1) as prescribed in Clause 1 of this Article.

Clause 4. The quantity of minerals extracted during the period to determine the amount of environmental protection fee payable is the actual quantity of raw minerals extracted during the period of payment (Q2). In cases where minerals must be screened, beneficiated, classified, enriched before sale, or other necessary conversions, the Department of Natural Resources and Environment shall take the lead and coordinate with the local Tax Office to submit to the provincial People's Committee for approval the conversion ratio from finished product quantities to raw mineral quantities as the basis for calculating environmental protection fees for each type of mineral, in line with actual conditions in the locality.

4. The quantity of minerals extracted during the period for determining the amount of environmental protection fees to be paid is the actual quantity of raw minerals extracted during the fee payment period (Q2). In cases where extracted minerals must undergo screening, beneficiation, classification, enrichment before being sold, or other cases requiring conversion, based on the actual extraction conditions and mineral processing technology in the locality, the Department of Natural Resources and Environment shall take the lead, coordinating with the local Tax Revenue Service to submit to the People's Committee of the province for a decision on the conversion ratio from the quantity of finished minerals to the quantity of raw minerals as the basis for calculating environmental protection fees for each type of mineral in accordance with the actual situation of the locality.

Article 5. Management and use of environmental protection fees for mineral exploitation

Clause 1. Environmental protection fees for mineral exploitation, excluding crude oil and natural gas, coalbed methane, are local budget revenues to be used entirely to support environmental protection and investment in the environment at the location where mineral exploitation activities take place, in accordance with the Environmental Protection Law and the State Budget Law, as follows:

a) Prevention and limitation of adverse impacts on the environment at the locality where mineral exploitation occurs;

b) Remediation of environmental degradation and pollution caused by mineral exploitation activities;

c) Maintenance, protection, and restoration of the environmental landscape at the locality where mineral exploitation occurs.

Clause 2. Environmental protection fees for crude oil and natural gas, coalbed methane are central budget revenues to be used entirely to support environmental protection and investment in the environment in accordance with the provisions of the Environmental Protection Law and the State Budget Law.

Clause 3. The People's Committee of the province shall submit to the People's Council of the same level for the allocation and use of the environmental protection fee revenue for environmental protection work at the location where mineral exploitation activities take place.

Clause 4. Annually, the agency responsible for collecting environmental protection fees shall have the responsibility to publicly disclose the amount of environmental protection fees paid by enterprises.

Chapter III

IMPLEMENTING PROVISIONS

Article 6. Effectiveness

Clause 1. This Decree takes effect from May 1, 2016, and replaces Government Decree No. 74/2011/NĐ-CP dated May 28, 2011, on environmental protection fees for mineral exploitation.

Clause 2. From the date this Decree takes effect, in cases where the Provincial People's Council has not issued new fee levels according to the attached Appendix Table of Fee Frameworks under this Decree, the previously issued fee levels shall continue to apply; specifically, for aluminum ore, bauxite; feldspar, sericite, and graphite, if the Provincial People's Council has not issued new fee levels, the maximum levels specified in the attached Appendix Table of Fee Frameworks under this Decree shall be applied.

Article 7. Implementation Organization

Clause 1. The Ministry of Finance shall provide guidance on the collection, payment, management, and use of environmental protection fees for mineral exploitation as stipulated in this Decree and direct tax agencies to cooperate with local natural resources and environment management agencies to organize the management and collection of fees in accordance with this Decree and relevant tax management laws.

Clause 2. The People's Committees of provinces and centrally governed cities shall be responsible for directing local natural resources and environment management agencies within their functions, duties, and authorities to provide information and documents about organizations and individuals permitted to exploit minerals in their locality to tax agencies and cooperate closely with tax agencies to manage entities required to pay fees as stipulated in this Decree.

Clause 3. By no later than July 31, 2016, the Provincial People's Council shall issue a Resolution on environmental protection fees for mineral exploitation applicable in their locality in accordance with Clause 4, Article 3 of this Decree.

Article 8. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees, and related organizations and individuals are responsible for implementing this Decree./.