Joint Circular No. 125/2003/TTLT-BTC-BTNMT guiding the implementation of Government Decree No. 67/2003/NĐ-CP on environmental protection fees for wastewater

JOINT CIRCULAR

GUIDELINES FOR IMPLEMENTING DECREE NO. 67/2003/NĐ-CP OF JUNE 13, 2003 ON ENVIRONMENTAL PROTECTION FEES FOR WASTEWATER

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WHEREAS, THE FEE AND CHARGE ORDINANCE NO. 38/2001/PL-UBTVQH10 OF AUGUST 28, 2001, ISSUED BY THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY;

Pursuant to Decree No. 57/2002/NĐ-CP dated June 3, 2002 of the Government detailing the implementation of the Ordinance on Fees and Charges;

WHEREAS, DECREE NO. 67/2003/NĐ-CP OF JUNE 13, 2003, ISSUED BY THE GOVERNMENT ON ENVIRONMENTAL PROTECTION FEES FOR WASTEWATER;

THE MINISTRY OF FINANCE AND THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT ISSUE GUIDELINES FOR IMPLEMENTATION OF ENVIRONMENTAL PROTECTION FEES FOR WASTEWATER AS FOLLOWS:

I. OBJECTS SUBJECT TO THE FEE AND SCOPE OF REGULATION

1. OBJECTS SUBJECT TO THE ENVIRONMENTAL PROTECTION FEE FOR WASTEWATER

The objects subject to the environmental protection fee for wastewater include industrial wastewater and domestic wastewater.

a) Industrial wastewater is wastewater discharged into the environment from:

- Industrial production facilities;

- Food processing facilities, agricultural products, forestry products, aquatic products; animal slaughterhouses;

- Alcohol, beer, soft drink production facilities; leather tanning and leather recycling facilities;

- Traditional craft village small-scale industrial production facilities;

- Concentrated livestock farms;

- Concentrated automobile and motorcycle repair facilities;

- Mineral extraction and processing facilities;

- Industrial shrimp farming facilities; shrimp breeding and seed production facilities;

- Water supply plants; centralized wastewater treatment systems.

b) Domestic wastewater is wastewater discharged into the environment from:

- Households;

- State administrative agencies;

- People's armed forces units;

- Management offices, branches, and offices of organizations and individuals;

- Car and motorcycle washing facilities;

- Hospitals; clinics; restaurants; hotels; other production, business, and service facilities;

- Other objects with wastewater not included in the provisions at points a and b above.

2. OBJECTS EXEMPT FROM THE ENVIRONMENTAL PROTECTION FEE FOR WASTEWATER

Objects exempt from the environmental protection fee for wastewater include:

a) Water discharged from hydroelectric power plants, circulating water in production and business facilities;

b) Seawater used for salt production and discharged;

c) Domestic wastewater from households in areas where the state implements price subsidies to ensure appropriate water prices for economic and social life;

d) Domestic wastewater from households in areas without centralized clean water supply systems;

đ) Domestic wastewater from households in rural communes, including:

- Communes along borders, mountainous regions, highlands, remote and far-flung areas (as defined by the Government regarding border communes, mountainous regions, remote and far-flung areas);

- Communes not classified as special cities, first-class, second-class, third-class, fourth-class, and fifth-class cities according to Decree No. 72/2001/NĐ-CP of October 5, 2001, on the classification of cities and urban management levels.

3. OBJECTS REQUIRED TO PAY THE ENVIRONMENTAL PROTECTION FEE FOR WASTEWATER

The objects required to pay the environmental protection fee for wastewater are households, units, and organizations with wastewater as specified in point 1 of this section.

4. APPLICATION OF INTERNATIONAL AGREEMENTS

In cases where international agreements to which the Socialist Republic of Vietnam has acceded or joined contain provisions different from those in Decree No. 67/2003/NĐ-CP and these guidelines, the provisions of such international agreements shall apply. The application of international agreements shall be carried out in accordance with the Ordinance on the Conclusion and Implementation of International Agreements and guiding documents.

II. AMOUNT OF FEE COLLECTION

1. ENVIRONMENTAL PROTECTION FEE FOR DOMESTIC WASTEWATER

The amount of the environmental protection fee for domestic wastewater is calculated as a percentage (%) of the selling price of 1 cubic meter (m³ ) of clean water, but not exceeding 10% (ten percent) of the selling price of clean water excluding value-added tax.

For domestic wastewater discharged from organizations and households that self-extract water for use (excluding households in areas without centralized clean water supply systems), the fee amount is determined based on each water user, taking into account the average volume of water used per person in the commune or ward where the water is extracted and the average selling price of 1 cubic meter (m³ ) of clean water in the commune or ward.

Based on the provisions on the amount of the environmental protection fee for domestic wastewater in Clause 1, Article 6 of Decree No. 67/2003/NĐ-CP and the socio-economic conditions, living standards, and income of the people in the locality, the People's Committee of provinces and centrally governed cities shall establish the amount of the environmental protection fee for domestic wastewater applicable to specific areas and types of objects in the locality to submit to the Provincial People's Council for decision.

2. Environmental Protection Fee for Industrial Wastewater

The amount of the environmental protection fee for industrial wastewater is calculated based on each pollutant present in the wastewater, as follows:

Wherein, the receiving environments for wastewater are categorized into four types A, B, C, and D as follows:

+ Receiving environment for wastewater type A: inner city and town areas of special class, first-class, second-class, and third-class cities.

+ Receiving environment for wastewater type B: inner city and town areas of fourth-class and fifth-class cities and suburban areas of special class, first-class, second-class, and third-class cities.

+ Receiving environment for wastewater type C: suburban areas of fourth-class cities and communes not classified as urban areas, except those in the receiving environment for wastewater group D.

+ Receiving environment for wastewater type D: border communes, mountainous regions, highlands, remote, and far-flung areas.

Special class, first-class, second-class, third-class, fourth-class, and fifth-class cities are implemented according to Decree No. 72/2001/NĐ-CP of October 5, 2001, on the classification of cities and urban management levels and guiding documents.

III. DETERMINATION OF THE FEE AMOUNT

1. ENVIRONMENTAL PROTECTION FEE FOR DOMESTIC WASTEWATER

a) The amount of the environmental protection fee for domestic wastewater is determined as follows:

- In cases where the fee collection rate is set as a percentage of the selling price of clean water:

- In cases where the fee level is specified as a fixed amount:

b) The quantity of clean water used shall be determined based on the meter measuring the consumption of clean water by the fee payer. In cases where the fee payer has not yet installed a meter to measure the consumption of clean water, it shall be applied according to the quota of clean water consumption for each type of user as prescribed by the Provincial People's Council, centrally governed city, which is suitable for each type of clean water user.

In cases of self-extraction of water, the quantity of clean water used shall be determined based on the number of people listed in the household registration book (for households) or attendance sheets, payrolls, labor contracts (for non-production and business organizations), and the average clean water consumption per person in the commune, ward.

For production, business, and service establishments that self-extract water for use, the quantity of clean water used shall be determined based on the scale of their production and business activities, as declared by the establishment, and confirmed by the Commune, Ward People's Committee.

c) In cases where the price of clean water already includes value-added tax, the price of clean water excluding value-added tax shall be determined as follows:

2. Environmental Protection Fee for Industrial Wastewater

a) The environmental protection fee for industrial wastewater shall be calculated for each pollutant according to the following formula:

b) In cases where the industrial wastewater from a fee payer contains multiple pollutants as stipulated in Clause 2, Article 6 of Decree 67/2003/NĐ-CP and guided at point 2 of this part, the environmental protection fee for industrial wastewater to be paid shall be the total of the environmental protection fees for each pollutant in the wastewater.

IV. DECLARATION, AUDIT AND PAYMENT OF FEES

1. ENVIRONMENTAL PROTECTION FEE FOR DOMESTIC WASTEWATER

a) Monthly, the clean water supply unit collects the environmental protection fee for wastewater from organizations and individuals who are subject to the environmental protection fee for domestic wastewater simultaneously with the collection of water usage fees. Organizations and individuals who are subject to the environmental protection fee for domestic wastewater have the obligation to pay the full amount of the environmental protection fee for wastewater to the clean water supply unit simultaneously with the payment of water usage fees according to the monthly sales invoice.

b) The Commune, Ward People's Committee determines and collects fees from organizations, households, production, business, and service establishments that self-extract water for use within their jurisdiction, which are subject to the environmental protection fee for domestic wastewater.

c) The clean water supply units and Commune, Ward People's Committees open accounts "temporary holding account for environmental protection fee for wastewater" at the State Treasury on their territory. Depending on the actual situation of collecting the environmental protection fee, they must deposit the collected environmental protection fee for wastewater into the temporary holding account periodically daily or weekly. The clean water supply units and Commune, Ward People's Committees must maintain separate accounting records to track the newly generated environmental protection fee for domestic wastewater for settlement with the state budget. The environmental protection fee for domestic wastewater cannot be recorded as revenue of the clean water supply units.

d) Monthly, the clean water supply units and Commune, Ward People's Committees base on the collected fees to calculate and prepare the declaration form for the environmental protection fee for domestic wastewater (according to Form No. 01 issued together with this Circular) to send to the Tax Department and the State Treasury where the temporary holding account for the environmental protection fee for wastewater is opened. At the same time, they must complete the procedures to fully pay the environmental protection fee for domestic wastewater into the state budget at the State Treasury (after deducting the retained fee as prescribed) no later than the 20th day of the following month. The environmental protection fee for domestic wastewater deposited into the State Treasury shall be recorded under the corresponding chapter, category, item, sub-item 042.01 of the current State Budget Manual and adjusted according to the guidance at point 3 of Section V of this Circular.

e) Annually, within 60 days from January 1st of the Gregorian calendar year, the clean water supply units and Commune, Ward People's Committees must settle accounts with the Provincial Tax Department regarding the collection and payment of the environmental protection fee for domestic wastewater collected in their jurisdiction according to the prescribed regulations.

2. Environmental Protection Fee for Industrial Wastewater

a) The entities subject to the environmental protection fee for industrial wastewater have the obligation:

- To declare the amount of fee payable quarterly to the Department of Natural Resources and Environment at the location where the wastewater is discharged in accordance with the regulations (Form No. 02 issued together with this Circular) within the first ten days of the next quarter and ensure the accuracy of the declaration;

- To pay the full amount of the fee payable into the Environmental Protection Fee Account for Wastewater at the local State Treasury according to the notification of the Department of Natural Resources and Environment, but no later than the 20th day of the next quarter;

- To settle accounts annually with the Department of Natural Resources and Environment within thirty days from January 1st of the Gregorian calendar year.

b) The environmental protection fee for industrial wastewater deposited into the State Treasury shall be recorded under the corresponding chapter, category, item, sub-item 042.01 of the current State Budget Manual and adjusted according to the guidance at point 3 of Section V of this Circular after deducting the retained fee for the Department of Natural Resources and Environment.

c) The Department of Natural Resources and Environment has the responsibility:

- To audit the declaration form for the environmental protection fee for industrial wastewater, issue a notice of the amount of fee payable and the deadline for payment into the state budget (according to Model No. 03 issued together with this Circular).

The basis for reviewing the Environmental Protection Fee Declaration is the result of the initial water quality sampling and analysis. In cases where such data is not available, the review of the Declaration will be based on the Environmental Impact Assessment Report or the Environmental Activity Inventory or the Environmental Standard Registration that has been approved (referred to collectively as the EIA in this Circular). If none of these bases are available, the environmental protection fee for industrial wastewater will be temporarily collected at the declared rate. After obtaining the results of the initial sampling and analysis, any underpayment or overpayment will be adjusted accordingly. If the payer has overpaid but continues to incur additional fees, the excess payment can be offset against future payments.

The notification of the actual amount of fee payable shall be carried out as follows: If the discrepancy between the Declaration of the payer and the initial sampling and analysis results or the approved EIA data is within the permissible limit of 30%, the environmental protection fee for wastewater will be collected at the declared rate. If the discrepancy exceeds the permissible limit, the Department of Natural Resources and Environment will cooperate with the payer to organize the assessment and sampling analysis of the pollutant load and parameters of the wastewater to determine the amount of fee payable. The costs for the second round of assessment and sampling analysis are stipulated in Point 2, Section V of this Circular.

- Maintain accounting records to separately track the environmental protection fee for industrial wastewater paid by payers within their jurisdiction, monitor and manage the portion of the fee specified in Point 2, Section V of this Circular.

- Annually, within sixty days from January 1st, settle accounts with the competent tax authority regarding the collection and remittance of the environmental protection fee for industrial wastewater collected within their jurisdiction in accordance with the prescribed regulations.

- Prepare a plan for using the portion of the fee collected as stipulated in Point 3, Section V of this Circular and submit it to the People's Committee of the province or centrally administered city for investment decisions on environmental protection within their jurisdiction.

d) For production and service establishments directly managed by the Ministry of Public Security and the Ministry of National Defense due to national security and confidentiality reasons, the review of the Environmental Protection Fee Declaration shall be conducted by the Ministry of Public Security and the Ministry of National Defense and reported to the Department of Natural Resources and Environment where the establishment operates (according to Model No. 04 issued together with this Circular).according to Model No. 04 issued together with this Circular).

đ) When changing raw materials, products; altering production lines, technological processes; installing pollution reduction equipment, wastewater treatment systems, the business owner must report in writing to the Department of Natural Resources and Environment to re-determine the appropriate fee payable.

3. Evaluation and Sampling Analysis of Wastewater for Reviewing the Environmental Protection Fee Declaration for Industrial Wastewater

a) Initial Evaluation and Sampling Analysis

- The Ministry of Natural Resources and Environment and the Departments of Natural Resources and Environment of centrally administered cities and provinces shall coordinate to organize the initial evaluation and sampling analysis of wastewater for all entities subject to the environmental protection fee for industrial wastewater nationwide, corresponding to the level of review of the EIA report. The results of this evaluation and sampling analysis serve as the basis for the Department of Natural Resources and Environment to review the Declaration of the enterprise.

The state budget ensures funding to cover the costs of the initial evaluation and sampling analysis of wastewater to determine the environmental protection fee for industrial wastewater. This expenditure is part of the annual budget allocation for environmental public services activities.

- Annually, the Ministry of Natural Resources and Environment prepares plans and budgets for expenditures covered by the central government budget, while the Departments of Natural Resources and Environment prepare plans and budgets for expenditures covered by local government budgets to cover the costs of the initial evaluation and sampling analysis of wastewater to determine the environmental protection fee for industrial wastewater.

- The implementation of the budget plan and settlement of expenditures from the state budget for the initial evaluation and sampling analysis of wastewater to determine the environmental protection fee for industrial wastewater shall be carried out in accordance with the State Budget Law and related implementing regulations.

- The determination of the environmental protection fee for industrial wastewater through the initial evaluation and sampling analysis of wastewater shall be carried out in accordance with the State Budget Law and related implementing regulations.

b) Subsequent Evaluations and Sampling Analyses

In cases where the discrepancy between the Declaration of the payer and the initial sampling and analysis results or the approved EIA data exceeds the permissible limit, the Department of Natural Resources and Environment will conduct subsequent evaluations and sampling analyses to determine the amount of fee payable by the payer.

Subsequent evaluations and sampling analyses from the second round onwards shall be carried out by organizations licensed by the Ministry of Natural Resources and Environment and assigned activity codes for evaluating and sampling wastewater for the purpose of collecting environmental protection fees for wastewater, through contracts for wastewater evaluation and sampling analysis between the Department of Natural Resources and Environment and the organization.

In case of disputes between the evaluation and sampling organization and the payer regarding the results of the evaluation and sampling of wastewater, they should report to the Department of Natural Resources and Environment or the Ministry of Natural Resources and Environment for resolution.

V. MANAGEMENT AND USE OF COLLECTED FEES

The environmental protection fee for wastewater is a revenue item of the state budget, which shall be managed and used as follows:

1. ENVIRONMENTAL PROTECTION FEE FOR DOMESTIC WASTEWATER

a) Retain a portion of the total fees collected for the water supply unit to cover the costs of fee collection. The portion of fees retained for the water supply unit to cover the costs of fee collection shall be calculated as a percentage of the total annual fee revenue. The People's Council of the province or centrally governed city shall decide on the stable percentage rate to be retained over several years in accordance with points 3 and 4 of Section C, Part III of Circular No. 63/2002/TT-BTC dated July 24, 2002, issued by the Ministry of Finance guiding the implementation of laws and regulations on fees and charges. The maximum percentage rate to be retained shall not exceed 10% of the total environmental protection fee revenue from domestic wastewater.

In cases where water is self-extracted for use, the People's Council of the province or centrally governed city shall decide on the maximum percentage rate not exceeding 15% of the total fee revenue to be retained for the People's Committee of the commune or ward to cover the costs of collecting the environmental protection fee for the wastewater of these entities.

The entire amount of the environmental protection fee for domestic wastewater collected as provided above must be used for its intended purpose by the water supply unit and the People's Committee of the commune or ward, with legitimate documentation according to prescribed procedures. Any unspent funds at the end of the year may be carried forward to the next year for expenditure according to prescribed procedures.

b) The remaining portion of the fees (after deducting the fees retained for the water supply unit and the People's Committee of the commune or ward) shall be deposited into the State budget and allocated among different levels of the budget in accordance with point 3 of Section V of this Circular.

2. Environmental Protection Fee for Industrial Wastewater

Retain 20% of the total environmental protection fee revenue from industrial wastewater for the Department of Natural Resources and Environment to cover the costs of fee collection and the costs of assessing and sampling wastewater for periodic or spot checks starting from the second time onwards. Specifically:

- 5% of the total environmental protection fee revenue from industrial wastewater shall be used to cover the costs of fee collection as stipulated in point 4 of Section C, Part III of Circular No. 63/2002/TT-BTC dated July 24, 2002, issued by the Ministry of Finance guiding the implementation of laws and regulations on fees and charges.

- The remaining 15% shall be used to cover the costs of assessing and sampling wastewater for periodic or spot checks starting from the second time onwards. Expenditure must comply with prescribed standards, norms, and regulations.

The entire amount of the environmental protection fee for industrial wastewater collected as provided above must be used for its intended purpose by the Department of Natural Resources and Environment, with legitimate documentation according to prescribed procedures. Any unspent funds at the end of the year may be carried forward to the next year for expenditure according to prescribed procedures.

b) The remaining portion of the fees (80% of the total environmental protection fee revenue from industrial wastewater collected) shall be deposited into the State budget and allocated among different levels of the budget in accordance with point 3 of Section V of this Circular.

3. Management and utilization of the environmental protection fee deposited into the state budget

The environmental protection fee for wastewater deposited into the state budget shall be allocated among different levels of the budget as follows:

a) The central budget shall enjoy 50% to supplement the operational capital of the Vietnam Environmental Protection Fund pursuant to Decision No. 82/2002/QD-TTg dated June 26, 2002, issued by the Prime Minister regarding the establishment, organization, and operation of the Vietnam Environmental Protection Fund. The management and utilization of this portion of the fee shall be implemented in accordance with Circular No. 93/2003/TT-BTC dated October 6, 2003, issued by the Ministry of Finance guiding financial management for the Vietnam Environmental Protection Fund.

b) The local budget shall enjoy 50% to be used for environmental protection within the locality (prevention, mitigation, and treatment of pollution, degradation, and environmental incidents), new investments, dredging of drainage channels, maintenance, and upkeep of the drainage system in the locality.

Payment and settlement of expenditures from the environmental protection fee for wastewater deposited into the state budget shall be carried out in accordance with the provisions of the State Budget Law and related implementing regulations.

VI. DOCUMENTATION FOR COLLECTION AND CURRENCY FOR PAYMENT OF FEES

1. Documentation for Collection

a) For the environmental protection fee for domestic wastewater: use sales invoices issued by the water supply unit. In addition to the required information that must be included in the invoice according to regulations, the sales invoice of the water supply unit must clearly indicate the rate and amount of the environmental protection fee for domestic wastewater as a separate line on the invoice. Specifically, the following must be clearly stated in the total lines of the invoice: the price of clean water before value-added tax (VAT) (excluding the environmental protection fee for domestic wastewater), VAT, the environmental protection fee for domestic wastewater, and the payment amount. In cases where water is self-extracted for use, the People's Committee of the commune or ward shall use fee collection receipts in accordance with current regulations of the Ministry of Finance on the issuance, management, and use of tax stamps.

b) For the environmental protection fee for industrial wastewater: use fee collection receipts in accordance with current regulations of the Ministry of Finance on the issuance, management, and use of tax stamps.

2. Currency for Payment of Fees

The environmental protection fee for wastewater shall be paid in Vietnamese dong. In cases where payment is made in foreign currency, it must be converted to Vietnamese dong based on the interbank foreign exchange rate published by the State Bank of Vietnam at the time of fee collection.

VII. IMPLEMENTATION ORGANIZATION

1. Organizations and individuals violating Vietnamese environmental standards shall be subject to penalties under the law and must pay the environmental protection fee if they discharge wastewater containing pollutants into the environment.

2. Based on the provisions of Decree No. 67/2003/NĐ-CP and the guidance provided in this Circular, it is recommended that the People's Council of the province or centrally governed city promptly decide on the rate of the domestic wastewater fee in their locality to organize fee collection from January 1, 2004.

If the People's Council of the province or centrally governed city has not decided on the rate of the environmental protection fee for domestic wastewater, the Department of Finance shall study and propose to the People's Committee of the province or centrally governed city to establish the rate, which the People's Committee shall report to the Standing Committee of the People's Council of the province or centrally governed city for prompt decision-making to ensure implementation from January 1, 2004.

3. The Ministry of Natural Resources and Environment shall be responsible for supervising, inspecting the appraisal activities of Environmental Impact Statements conducted by Provincial Departments of Natural Resources and Environment, and promptly guiding the resolution of arising issues.

4. Local State Treasury shall be responsible for organizing the accounting entries for budget revenues and expenditures from fees collected in accordance with this Circular and current laws on state budget.

5. Local Tax Authority shall be responsible for inspecting, urging, guiding, and settling the final accounts of the collection and payment of environmental protection fees for wastewater from water supply units, People's Committees of communes and wards, and Provincial Departments of Natural Resources and Environment.

6. The Department of Finance shall be responsible for coordinating with the Provincial Department of Natural Resources and Environment to monitor and settle the portion of fees retained as prescribed in Point 2, Section V of this Circular.

7. Complaints, denunciations, and the handling of complaints and denunciations regarding the collection, payment, management, and use of environmental protection fees for wastewater under Decree No. 67/2003/NĐ-CP and the guidance provided in this Circular shall be carried out in accordance with the laws on complaints and denunciations and laws on fees and charges.

8. This Circular shall take effect fifteen days from the date of publication in the Official Gazette. The provisions concerning "Wastewater Treatment Costs" in Joint Circular No. 03/1999/TTLT/BXD-BVGCP dated June 16, 1999, issued by the Ministry of Construction and the Government Price Control Board on guiding pricing methods and price-setting authority for urban and industrial clean water consumption and rural residential clusters shall cease to be effective.

During the implementation process, if any difficulties arise, organizations and individuals are requested to promptly report them to the Ministry of Finance and the Ministry of Natural Resources and Environment for consideration, resolution, or amendment and supplementation as appropriate.