Circular No. 43-TC/TDT/P2 Regarding the Collection of Road Repair Fees

CIRCULAR

Regarding the collection of road repair costs

The Prime Minister has issued a decree on the collection of road repair costs to enhance the management of roads and increase revenue for the public treasury.

The Ministry of Transport and Finance has clarified the purpose, significance, and procedures for collection and submission.

Below, the Ministry provides additional explanations on some detailed implementation procedures:

I. ASSIGNMENT OF COLLECTION RESPONSIBILITIES

Road repair costs constitute a new source of revenue; financial authorities need to closely coordinate with tax, transportation, and police departments to collect accurately and fully.

For private vehicles engaged in business operations, vehicles of enterprises will be collected by the tax department.

Vehicles of government agencies and private vehicles not engaged in business operations will be directly collected by the finance department.

Road repair costs are collected based on the load capacity of each vehicle type. The Ministry of Transport will issue a circular detailing the methods for calculating load capacity and fees for various types of trailers, water-carrying vehicles, etc.

II. DISTINCTION BETWEEN ROAD REPAIR COSTS AND TERMINAL FEES

Road repair costs and terminal fees are two different types of charges. While collecting road repair costs, terminal fees should still be collected. It is necessary to explain clearly to vehicle owners that terminal fees are only intended for the maintenance of terminals. Vehicles that do not park at terminals are exempt from terminal fees.

Currently, in Hanoi and Hai Phong, there is an additional charge called "vehicle fee" levied on motorized and rudimentary vehicles operating within city limits without parking at terminals. This will be revised as follows:

a) Abolish the vehicle fee for vehicles operating within city limits that are already required to pay road repair costs.

b) Vehicles or means of transport not subject to road repair costs must still pay the vehicle fee according to the regulations set by the city.

The above changes will take effect from May 1, 1985.

III. PROCEDURES FOR COLLECTING AND SUBMITTING ROAD REPAIR COSTS

Road repair costs are a fixed local revenue. The collected funds are deposited into the local general budget (Item II - Subitem 8 - Category 2).

Vehicles registered in a particular location pay road repair costs to that location. However, to better align with the operational circumstances of vehicle owners, the Ministry stipulates the following cases:

- Enterprises, agricultural cooperatives, and grassroots units of central agencies located in a certain place shall pay road repair costs to that locality.

- Private vehicles pay road repair costs based on where they pay corporate income tax.

- When moving to a new business location, road repair costs must continue to be paid to the new locality starting from the month after the move. The amount paid to the previous locality remains part of the local general budget.

Collection and submission procedures - Road repair costs are collected through notices submitted directly by vehicle owners to the state treasury without going through the finance or tax departments.

The notice serves as a receipt after being signed by the state treasury.

The notice consists of four parts:

- Part 1 - Given to the vehicle owner or the agency holding it as proof after payment to the state treasury.

- Part 2 - Kept by the state treasury.

- Part 3 - A return slip, sent back to the finance or tax department for verification after receiving the full amount indicated in the notice.

- Part 4 - (stub) kept by the collecting agency for record-keeping.

Monthly, when it is time to collect road repair costs, the collecting agency sends notices to vehicle owners and agencies with vehicles in three parts: Parts 1, 2, and 3. Vehicle owners will sign the stub Part 4 as proof.

Upon receiving the notice, vehicle owners are responsible for bringing the money to the provincial or city state treasury to make the payment.

After receiving the full payment, the state treasury signs and returns Part 1 of the notice to the payer. Part 2 is kept by the state treasury as documentation and sent back to the issuing agency with Part 3.

The finance or tax department, upon receiving Part 3, will reconcile it with Part 4.

Regularly, the finance and tax departments monitor through Part 4 to urge those who have not yet paid to submit their payments on time.

If a vehicle owner stops operating, they are exempt from road repair costs according to Article 8 of Decree 145-TTG dated March 15, 1958, issued by the Prime Minister's Office.

However, for ease of monitoring, the finance and tax departments can only exempt road repair costs for vehicle owners if they provide a certificate from the transportation authority or the police.

In Hanoi and Hai Phong, there is currently a system of miscellaneous charges using stamps, but considering the inconvenience of stamp-based collections for localities, this method will not be applied to the collection of road repair costs.

For government agencies, enterprises, and agricultural cooperatives, road repair costs are also collected through notices. Agencies will base their payments on these notices, making transfers. After transferring the money, the agency with the vehicle will go directly to the state treasury for confirmation of payment. Part 1 of the notice, signed by the state treasury, will serve as a settlement voucher.

Additionally, for easier monitoring, each vehicle owner will be provided with a road repair cost payment card with 12 spaces. Each month, after paying, the vehicle owner presents the card to the state treasury where the payment was made for the treasury to sign and stamp each space monthly. During inspections, the vehicle owner only needs to present the payment card as proof.

Ledgers: - The finance and tax departments maintain separate detailed ledgers to track road repair cost revenues including:

- One volume of vehicle status records (attached model)

- One volume of detailed collection records (attached model)

IV. RELATIONSHIP BETWEEN FINANCE, TAX, TREASURY, POLICE, AND TRANSPORTATION

There needs to be close cooperation between finance and the departments of taxation, police, transportation, and local treasuries.

Monthly, the finance department needs to convene regular meetings with the treasury to reconcile accounts, review work, and plan anti-evaporation measures.

The tax department submits monthly reports to the finance department on the results of the month's collections.

Transportation and police agencies periodically report to the finance and tax departments on changes in the activities of vehicle owners.

At the end of each month, after reviewing the work, the finance department will reflect the detailed results of the month's collections in the provincial monthly report and submit it to the Ministry.

Initially, to prepare for collection, the finance department needs to directly discuss with transportation and police agencies to obtain the master list of registered vehicle owners.

V. MEASURES FOR APRIL 1958

In the case of April 1958, where localities have not yet prepared to issue notices in time, the Ministry agrees to proceed with collection using receipts and payment slips.

The submission period may be extended until April 25, 1958. However, it is necessary to arrange the collection plan thoroughly to avoid the situation of delaying and concentrating collections in the following month.

The arrangement for collection as mentioned above is only a temporary measure for April 1958. Provinces need to prepare complete ledgers and documents to collect according to the notice at the beginning of May 1958. At the end of April 1958, financial authorities need to convene with tax authorities, public security, transportation, and treasury departments to review the April ledgers and close them.

The collection of road repair costs is a new matter, requiring explanation to vehicle owners so that each understands the policy and strictly complies with it.

While implementing, provinces need to promptly reflect difficulties and obstacles to the Ministry for timely resolution.