Decree No. 154/2016/ND-CP on Environmental Protection Fees for Wastewater

DECREE

ON ENVIRONMENTAL PROTECTION FEES FOR WASTEWATER

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

Pursuant to the Law on Fees and Registration Fees dated November 25, 2015;

Pursuant to the Law on Environmental Protection dated June 23, 2014;ngThe Government promulgates this Decree on environmental protection fees for wastewater.

At the proposal of the Minister of Finance;

This Decree stipulates the objects subject to fees, exemptions from fees, payers, collection rates, declaration, payment, management, and use of environmental protection fees for wastewater.1. The objects subject to environmental protection fees under this Decree are industrial wastewater and domestic wastewater, except for cases exempted from payment according to Article 5 of this Decree.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

2. Industrial wastewater is wastewater from:

Article 2. Objects Subject to Fees

a) Production facilities, processing facilities: Agricultural products, forestry products, aquatic products;

b) Production facilities, processing facilities: Food, alcohol, beer, soft drinks, tobacco;

c) Livestock breeding and slaughtering facilities: Concentrated livestock and poultry;

d) Aquaculture facilities;

đ) Handicraft production facilities in traditional craft villages;

e) Facilities: Leather processing, leather recycling;

g) Facilities: Mineral extraction and processing;

h) Facilities: Textile dyeing, printing, garment manufacturing;

i) Production facilities: Paper, pulp, plastic, rubber;

k) Production facilities: Fertilizers, chemicals, pharmaceuticals, plant protection products, construction materials, office supplies, household goods;

l) Facilities: Mechanical engineering, metallurgy, metal processing, machinery and parts manufacturing;

m) Production facilities: Electrical components, electronic equipment;

n) Facilities: Waste material processing, dismantling old ships, ship cleaning and washing;

o) Clean water supply plants;

p) Centralized wastewater treatment systems in industrial zones;

q) Other production facilities.

3. Domestic wastewater is wastewater from:

a) Households;

b) State agencies, public service units, people's armed forces units (excluding production and processing facilities within people's armed forces units);

c) Administrative offices, branches, offices of organizations and individuals not directly linked to production or processing sites;

d) Facilities: Car washing, motorcycle washing, car repair, motorcycle repair;

đ) Hospitals; clinics; restaurants, hotels; training and research facilities; other business and service facilities;

e) Organizations, individuals, and other entities whose wastewater is not specified in Clause 2 of Article 2 of this Decree.

Article 3. Fee Collection Agencies

The agencies collecting environmental protection fees for wastewater include:

1. Provincial Department of Natural Resources and Environment collects environmental protection fees for industrial wastewater. Based on local fee collection requirements and the management capacity of district-level natural resources and environment agencies, the Provincial Department of Natural Resources and Environment may report to the provincial People's Committee to delegate the collection of environmental protection fees for industrial wastewater to the district-level Natural Resources and Environment Office.

2. Water supply companies collect environmental protection fees for domestic wastewater from organizations and individuals using clean water.

3. Commune, ward, town People's Committees collect environmental protection fees for domestic wastewater from organizations, individuals, and households self-extracting water for use.

1. Organizations and individuals (including household heads) discharging wastewater as defined in Article 2 of this Decree are the payers of environmental protection fees for wastewater.

2. In cases where organizations and individuals discharge wastewater into centralized wastewater treatment systems and pay for wastewater treatment services, they are not required to pay environmental protection fees for wastewater. The entity managing and operating the drainage system is the payer of environmental protection fees for wastewater that has been received and discharged into the environment (except for cases specified in Clause 8 of Article 5 of this Decree).

Article 4. Fee Payers

3. For industrial production facilities; agricultural, forestry, and aquatic product production and processing facilities; centralized wastewater treatment systems as specified in Clause 2 of Article 2 of this Decree, which use water supplied by water supply companies for production and processing activities, must pay environmental protection fees for industrial wastewater (they are not required to pay environmental protection fees for domestic wastewater).

2. In cases where organizations and individuals discharge wastewater into centralized wastewater treatment systems and pay for wastewater treatment services, they are not required to pay environmental protection fees for the wastewater. The entity managing and operating the drainage system shall be responsible for paying the environmental protection fee for the wastewater that has been received and discharged into the environment (except for the cases specified in Clause 8, Article 5 of this Decree).

3. For industrial production facilities; agricultural, forestry, and aquatic product processing facilities; centralized wastewater treatment systems using clean water supplied by water supply units for production and processing activities, they must pay environmental protection fees for industrial wastewater (they are not required to pay environmental protection fees for domestic wastewater).

Article 5. Cases Exempt from Fees

Environmental protection fees shall be exempted for wastewater in the following cases:

1. Wastewater discharged from hydroelectric power plants, circulating water in production and processing facilities that do not discharge into the environment in any form (solid, liquid, gas);

2. Seawater used for salt production discharged;

3. Domestic wastewater from organizations, individuals, and households in areas where the State implements price subsidies to ensure appropriate water prices in line with economic and social life;

4. Domestic wastewater from organizations, individuals, and households in rural communes and places without clean water supply systems;

5. Cooling water for equipment and machinery that does not directly come into contact with pollutants and has its own separate drainage route;

6. Natural rainwater overflow (excluding areas within chemical plant zones);

7. Wastewater from fishing vessels;

8. Concentrated domestic wastewater received and treated by units managing and operating drainage systems to meet technical standards before being discharged into the environment.

Chapter II

LEVELS OF FEES, DECLARATION, PAYMENT, MANAGEMENT AND USE OF FEES

Article 6. Levels of Fees

1. The level of environmental protection fee for domestic wastewater is 10% of the selling price of 1 cubic meter of clean water excluding value-added tax. In cases where higher collection rates are necessary, the People's Councils of provinces and centrally-administered cities shall decide on specific levels suitable to local conditions. For domestic wastewater discharged from organizations and households self-extracting water for use (except households specified in Clause 3 and 4 of Article 5 of this Decree), the fee level is determined based on each individual user according to the average amount of water used per person in the commune, ward, town where water is extracted and the average selling price of 1 cubic meter of clean water at that location.

2. The level of environmental protection fee for industrial wastewater is calculated as follows:

F = f + C, where:

a) F is the amount of fee to be paid;

b) f is the fixed fee of 1,500,000 VND/year;

c) C is the variable fee, calculated based on: Total volume of wastewater discharged; pollutant parameter concentration and collection rate for each substance according to the table below:

Production and processing facilities with total wastewater discharge under 20 m³/day-night as stipulated herein shall not apply the variable fee.

Article 7. Determination of Amount of Fee to be Paid

1. For domestic wastewater:

The amount of environmental protection fee to be paid for domestic wastewater is determined as follows:

Where:

a) The quantity of clean water used is determined based on the meter reading of clean water consumption of the fee payer. In cases where the fee payer has not installed a meter to measure clean water consumption, it will be applied based on the quota of clean water consumption for each type of water user as prescribed by the People's Committee of provinces and centrally-administered cities in accordance with each type of user.

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

For business and service establishments self-extracting water for use, the quantity of clean water used is determined based on the scale of business and service activities declared by the establishment and verified by the People's Committee of the commune, ward, town.

b) The selling price of clean water is the selling price of clean water provided by the water supplier excluding value-added tax.

c) The fee collection rate is prescribed in Clause 1 of Article 6 of this Decree.

2. For industrial wastewater:

The amount of environmental protection fee for industrial wastewater is determined as follows:

a) The fixed fee to be paid is 1,500,000 VND/year;

b) The variable fee (C) as prescribed in Clause 2 of Article 6 is calculated for each pollutant substance according to the following formula:

In cases where the average annual wastewater discharge is less than 20 m³/day-night, the fixed fee (f) to be paid is: 1,500,000 VND/year;- In cases where the average annual wastewater discharge is 20 m³/day-night or more, the quarterly fee payable is calculated according to the following formula:

 = (f/4) + C

F_q+ F_q

Where:

 is the quarterly fee payable (VND);_q+ f = 1,500,000 VND;

 is the quarterly variable fee payable.

ĐMT_qc) Determination of the volume of wastewater discharged:

- For facilities equipped with wastewater meters, the volume of wastewater discharged is determined based on the meter readings;

- For facilities without wastewater meters, the volume of wastewater is determined based on actual measurement results by environmental management agencies or calculated as 80% of the water used or information in periodic environmental impact assessment reports.

- For facilities without wastewater flow meters, the volume of wastewater is determined based on actual measurements by state management agencies for the environment or calculated at 80% of the amount of water used or information provided in periodic quarterly environmental impact assessment reports.

Article 8. Declaration, Verification of Declaration Forms, and Payment of Fees

1. Environmental Protection Fee for Domestic Wastewater:

a) The fee payer shall pay the environmental protection fee for wastewater to the water supply unit simultaneously with the payment of clean water usage fees according to the monthly sales invoice.

b) The People's Committee of communes, towns, and wards shall determine and collect the fee from organizations, individuals, households, businesses, and services that self-exploit water for use within their jurisdiction.

c) Water supply units and the People's Committee of communes, towns, and wards shall open an account titled "Temporary Collection Account for Environmental Protection Fee for Domestic Wastewater" at the State Treasury on their territory. Depending on the amount of collected environmental protection fee for wastewater, they shall periodically deposit the collected fee into the temporary collection account daily, weekly, or monthly. By the 20th day of the following month at the latest, these entities shall be responsible for transferring the collected environmental protection fee for domestic wastewater from the temporary collection account to the state budget as prescribed.

Monthly, water supply units and the People's Committee of communes, towns, and wards shall calculate the amount of collected environmental protection fee for domestic wastewater, prepare declaration forms according to Model No. 01 Appendix issued together with this Decree, and submit them to the tax authority in their jurisdiction.

Water supply units and the People's Committee of communes, towns, and wards must maintain separate accounting records for the collected environmental protection fee for domestic wastewater. The collected environmental protection fee for domestic wastewater shall not be recorded as revenue of the water supply unit.

d) The State Treasury shall record the collected environmental protection fee submitted by water supply units and the People's Committee of communes, towns, and wards into the corresponding chapters, types, and clauses according to the current regulations of the State Budget Classification.

đ) Annually, within 90 days from January 1 of the following year, water supply units and the People's Committee of communes, towns, and wards must settle accounts with the tax authority regarding the collection and payment of the environmental protection fee for domestic wastewater in accordance with the prescribed procedures.

2. Environmental Protection Fee for Industrial Wastewater

a) The fee payer shall perform the following actions:

- Quarterly, declare the amount of fee payable according to point a, Clause 2, Article 7 of this Decree within five days at the beginning of the first month of the next quarter to the fee collecting organization using Model No. 02 Appendix issued together with this Decree, ensuring the accuracy of the declaration and facilitating the fee collecting organization in verifying the fee amount of the facility, conducting periodic or spot checks on discharge sources.

- Pay the full amount of the fee payable into the account titled "Temporary Collection Account for Environmental Protection Fee for Industrial Wastewater" at the State Treasury according to the notification of the Department of Natural Resources and Environment, but no later than ten days from the date of receipt of the notification of the fee payable from the Department of Natural Resources and Environment.

For production facilities and processing facilities with an average annual wastewater volume below 20 m3/day-night, the fixed fee payable according to Clause 2, Article 6 of this Decree shall be paid once annually according to the notification of the fee collecting organization, with the payment deadline not later than March 31.

- Settle the annual fee payable with the fee collecting organization within 45 days from January 1 of the following year.

b) The Department of Natural Resources and Environment and the District Office of Natural Resources and Environment (when delegated) shall be responsible for:

- Cooperating with relevant agencies to review and adjust the classification of fixed fee and variable fee payers; notify the fee payer no later than March 10 each year.

- Verify the declaration form for the environmental protection fee. The basis for verification is the declared data of the fee payer; the measurement results of the competent state environmental management agency or the most recent inspection or audit result, but not more than twelve months prior to the declaration and payment of the fee.

- No later than the last day of the first month of the next quarter, issue a notification of the environmental protection fee for industrial wastewater payable to the state budget to the fee payer using Model No. 03 Appendix issued together with this Decree.

- Maintain separate accounting records for the fee payer's environmental protection fee on their territory, monitor and manage the use of the fee as stipulated in Clause 2, Article 8 of this Decree.

- Quarterly, no later than the last day of the second month of the next quarter, the fee collecting organization shall consolidate the collected environmental protection fee and submit it to the tax authority, regularly reconciling with the State Treasury where transactions take place.

- Annually, within 90 days from January 1 of the following year, the fee collecting organization shall settle accounts with the tax authority regarding the collection and payment of the previous year's environmental protection fee in accordance with the prescribed procedures.

- Open an account titled "Temporary Collection Account for Environmental Protection Fee for Industrial Wastewater" at the State Treasury on their territory.

- Periodically (no later than the 15th day of the second month of the next quarter), the fee collecting organization shall cooperate with the State Treasury (where the temporary collection account is opened) to transfer 75% of the total collected fee into the state budget.

c) For production and service facilities under the direct management of the Ministry of Public Security and the Ministry of National Defense, if due to national security and confidentiality reasons, the verification of the declaration form for the environmental protection fee shall be conducted by the Ministry of Public Security and the Ministry of National Defense and notified to the Department of Natural Resources and Environment where the facility operates using Model No. 04 Appendix issued together with this Decree.

Article 9. Management and use of fees

1. For domestic wastewater:

a) To retain 10% of the total amount of environmental protection fees collected for the water supply unit and 25% for the People's Committee of communes, wards, towns to cover costs for fee collection activities. In cases where the organizational fee collection cost is lower than this retention ratio, the Provincial People's Council or the People's Council of centrally governed cities shall decide on specific retention rates that are appropriate but not exceeding 10% for the water supply unit and not exceeding 25% for the commune, ward, town People's Committee.

b) The remaining portion, after deducting the retained fee amount, shall be submitted by the water supply unit and the People's Committee of communes, wards, towns to the local budget for use as prescribed in Clause 3 of this Article.

2. For industrial wastewater:

a) To retain 25% of the total amount of environmental protection fees collected for the organization collecting fees to cover costs for fee collection activities (investigation, statistics, review, classification, updating, management of fee-paying entities); covering costs for measurement, assessment, sampling, and analysis of wastewater samples to serve the verification of fee declarations, fee management; periodic or spot checks on industrial wastewater.

b) The remaining portion (75% of the total environmental protection fees collected for industrial wastewater) shall be submitted to the local budget for use as prescribed in Clause 3 of this Article.

3. After deducting the retained fee amounts as prescribed in Clauses 1 and 2 of this Article, the fee collection entity shall be responsible for submitting the remainder to the local budget for use in environmental protection work; supplementing the operating capital for the local Environmental Protection Fund to be used for preventing, limiting, and controlling environmental pollution caused by wastewater; organizing the implementation of solutions, technological and technical measures for wastewater treatment.

4. Annually, the agency responsible for collecting environmental protection fees for wastewater shall publicly disclose the amount of fees paid by citizens and businesses from the previous year through mass media such as local newspapers, local radio stations, the website of the fee collection agency, and other suitable forms to inform citizens and businesses.

Article 10. Responsibilities and Obligations of Local Agencies

1. The provincial People's Committee shall submit to the same-level People's Council for the allocation and use of the collected environmental protection fees for environmental protection work as prescribed in Clause 3 of Article 9 of this Decree.

2. The Department of Natural Resources and Environment and the District/County Natural Resources and Environment Office shall be responsible for:

a) Cooperating with relevant agencies to classify fixed and variable fee payers according to Clause 2 of Article 6 of this Decree.

b) Reviewing the environmental protection fee declaration for industrial wastewater, issuing notices of the amount of fees to be paid; settling the amount of environmental protection fees for industrial wastewater of the fee payer.

c) Compiling data on environmental protection fees for wastewater at the local level to report to higher-level management agencies as prescribed.

d) Proposing amendments and supplements regarding the collection rate, management, and use of environmental protection fees for wastewater.

3. The tax authority shall be responsible for:

Inspecting, urging, and settling the collection and submission of environmental protection fees for wastewater by water supply units and local natural resources and environment agencies.

4. The Department of Finance shall be responsible for:

Taking the lead and coordinating with the Department of Natural Resources and Environment and the Tax Service to advise the provincial People's Committee to submit to the same-level People's Council for the specific regulation of the retention ratio for environmental protection fees for domestic wastewater as prescribed in Clause 1 of Article 9 of this Decree.

5. Local water supply units shall be responsible for:

a) Cooperating with the Department of Natural Resources and Environment and related units during the fee collection process.

b) Compiling data on environmental protection fees for domestic wastewater at the local level and reporting to the Department of Natural Resources and Environment.

Chapter III

IMPLEMENTING PROVISIONS

Article 11. Effective Date

1. This Decree takes effect from January 1, 2017, and replaces Government Decree No. 25/2013/NĐ-CP dated March 29, 2013, on environmental protection fees for wastewater.

2. Localities implementing the collection of sewage service charges as prescribed in Government Decree No. 80/2014/NĐ-CP dated August 6, 2014, on Sewage and Wastewater Treatment shall not collect environmental protection fees for wastewater as prescribed in this Decree.

Article 12. Implementation Organization

1. The Ministry of Natural Resources and Environment shall be responsible for:

a) Detailed regulations on circulating water and natural rainwater overflow as prescribed in Clause 1 and Clause 6 of Article 5 of this Decree.

b) Regulations on evaluating, sampling, and analyzing industrial wastewater to determine the amount of fees to be paid as prescribed in this Decree.

2. The People's Committees of provinces and centrally governed cities shall submit to the same-level People's Councils for the specific regulation of the retention ratio according to the authority prescribed in Clause 1 of Article 9 of this Decree.

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