Circular No. 280/2016/TT-BTC on the maximum price of public utility products and services in water conservancy

CIRCULAR

REGULATIONS ON MAXIMUM PRICES FOR WATER UTILITIES SERVICES

Pursuant to Law on Fees and Charges No. 97/2015/QH13 dated November 25, 2015;

Pursuant to the Price Law No. 11/2012/QH13 dated June 20, 2012;

Pursuant to the Government Decree No. 177/2013/NĐ-CP dated November 14, 2013 detailing and guiding the implementation of certain provisions of the Price Law;

Pursuant to Decree No. 149/2016/NĐ-CP dated November 11, 2016 of the Government amending and supplementing certain articles of Decree No. 177/2013/NĐ-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Prices;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services;

At the proposal of the Director of the Price Management Department;

The Minister of Finance issues this Circular prescribing maximum prices for water utilities services as follows:

Article 1. Scope of Regulation

This Circular stipulates the maximum prices for water utilities services.

Article 2. Applicability

This Circular applies to enterprises of all economic sectors, organizations using water that have registered business operations in accordance with the law, organizations and individuals legally registered to operate and related to the management and exploitation of irrigation works (hereinafter referred to as agricultural units), agencies and organizations related to the management and exploitation of irrigation works.

Article 3. Maximum Prices for Water Utilities Services

1. Price List for Maximum Prices of Water Utilities Services for Rice Fields:

- In case of partial active irrigation and drainage, the maximum price shall be 60% of the price in the above Table.

- In case of gravity-based irrigation and drainage only, the maximum price shall be 40% of the price in the above Table.

- In case of power-driven irrigation and drainage only, the maximum price shall be 50% of the price in the above Table.

- In case of tidal irrigation and drainage, the maximum price shall be 70% of the gravity-based irrigation and drainage price.

- In case of water supply from the second level or higher for projects constructed according to approved plans, the maximum price shall be increased by 20% compared to the price in the above Table.

- In case of separate pricing for irrigation and drainage on the same area, the maximum price for irrigation shall be 70%, and for drainage 30% of the price specified in the above Table.

2. For areas planted with seedlings, vegetables, short-term crops including winter crops, the maximum price shall be 40% of the maximum price for rice fields.

3. The maximum price applicable to salt production shall be 2% of the value of finished salt.

4. The maximum prices prescribed in Clauses 1, 2, and 3 of this Article shall apply to each irrigation and drainage method, each region, and shall be calculated at the head of the canal where the water user organization connects to the main irrigation work.

The maximum prices for water utilities services prescribed in this Circular are prices excluding VAT as provided for in Article 5 of the Law on Value Added Tax and any amendments or supplements thereto.

Article 4. Management and Use of Revenue from Supply of Water Utilities Services

1. When collecting revenue from supplying water utilities services, units must issue invoices in accordance with Decree No. 51/2010/NĐ-CP dated May 14, 2010 of the Government on invoices for goods sales and service provision, Decree No. 04/2014/NĐ-CP dated January 17, 2014 of the Government amending and supplementing some articles of Decree No. 51/2010/NĐ-CP dated May 14, 2010 of the Government on invoices for goods sales and service provision, Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance guiding the implementation of Decree No. 51/2010/NĐ-CP dated May 14, 2010 and Decree No. 04/2014/NĐ-CP dated January 17, 2014 of the Government on invoices for goods sales and service provision and any replacement or amended and supplemented documents (if any).

2. After fulfilling state budget obligations in accordance with the law, the remaining revenue from supplying water utilities services shall be retained by the unit for use in accordance with the law.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

1. Based on the maximum prices prescribed in Article 3 of this Circular, the Ministry of Agriculture and Rural Development shall prescribe specific prices for centrally-managed water utilities services, and the People's Committees of provinces and centrally-administered cities shall prescribe specific prices for locally-managed water utilities services as a basis for bidding, ordering, and planning the management and exploitation of irrigation works in accordance with the regulations.

2. Based on the maximum prices set by the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the People's Committees of provinces and centrally-administered cities shall prescribe specific prices but shall not exceed the maximum prices for water utilities services prescribed by the Ministry of Finance in Article 3 of this Circular.

3. Units supplying water utilities services must publicly display prices and information about prices in accordance with the law on prices.

Article 6. Implementation Provisions

1. This Circular takes effect from January 1, 2017.

2. During implementation, if there are any difficulties, organizations and individuals are requested to promptly report them to the Ministry of Finance for study and resolution./.