Decision No. 47/2013/QD-TTg On the establishment and approval of the Charter on organization and operation of the Fund for Prevention and Control of Harmful Effects of Tobacco

Pursuant to …;

Vconcerning the establishment and approval of the Charter on organization and operation

of the Fund for preventing and combating the harms caused by tobaccoJune 2024;

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Based on the Law on the Organization of the Government dated December 25, 2001;

Pursuant to the Law on Prevention and Control of Harmful Effects of Tobacco Products dated June 18, 2012;

At the proposal of the Minister of Finance,

The Prime Minister issues this Decision on the establishment and approval of the Charter on organization and operation of the Fund for preventing and combating the harms caused by tobacco.

Article 1. Establishment of the Fund for Preventing and Combating the Harms Caused by Tobacco

Establish the Fund for Preventing and Combating the Harms Caused by Tobacco (hereinafter referred to as the Fund) in accordance with Article 28 of the Law on Preventing and Combating the Harms Caused by Tobacco.

Article 2. Charter on Organization and Operation of the Fund

Approve and promulgate along with this Decision the Charter on organization and operation of the Fund.

Article 3. Sources of Formation and Principles of Using the Fund

1. The Fund shall be formed from the following sources:

a) Mandatory contributions from tobacco manufacturing and import enterprises as stipulated in Point a, Clause 1, Article 30 of the Law on Preventing and Combating the Harms Caused by Tobacco;

b) Financial support and voluntary contributions from domestic and foreign organizations and individuals;

c) Interest from bank deposits of the Fund;

d) Revenue from activities specified in Clause 2, Article 29 of the Law on Preventing and Combating the Harms Caused by Tobacco organized and implemented by the Fund (if any);

đ) Other lawful revenue (if any).

The revenues specified in Points a, b, c, and d of this Clause of the Fund are exempt from corporate income tax.

2. Principles of using the Fund:

The Fund shall be used in accordance with the principles stipulated in Clause 2, Article 30 of the Law on Preventing and Combating the Harms Caused by Tobacco.

3. Administrative Management Costs of the Fund:

The total administrative management costs of the Fund shall be applied at the percentage rate and according to the schedule as follows:

a) Not exceeding 5% of the total revenue from mandatory contributions to the Fund from May 1, 2013;

b) Not exceeding 4% of the total revenue from mandatory contributions to the Fund from May 1, 2016;

c) Not exceeding 3% of the total revenue from mandatory contributions to the Fund from May 1, 2019 onwards.

4. Approval of the Annual Financial Revenue and Expenditure Plan and Final Accounts of the Fund:

a) The Management Board of the Fund approves the annual financial revenue and expenditure plan and final accounts of the Fund.

b) Based on the annual financial revenue and expenditure plan and final accounts approved by the Management Board of the Fund, the Chairman of the Management Board of the Fund shall approve the annual financial revenue and expenditure plan and final accounts of the Fund in accordance with the law.

Article 4. Basis, Calculation Method, and Management and Collection of Mandatory Contributions from Tobacco Manufacturing and Import Enterprises

1. Basis for Calculating Mandatory Contributions:

The basis for calculating mandatory contributions from tobacco manufacturing and import enterprises is the special consumption tax base price for tobacco and the contribution rate (%). In which:

a) The special consumption tax base price for tobacco is implemented in accordance with the law on special consumption tax;

b) The contribution rate (%) is implemented according to the schedule: 1.0% from May 1, 2013; 1.5% from May 1, 2016; 2.0% from May 1, 2019.

2. Calculation Method:

The mandatory contribution is calculated by multiplying the special consumption tax base price for tobacco with the contribution rate.

3. Management and Collection of Mandatory Contributions:

a) Tobacco manufacturing and import enterprises shall calculate, declare, and pay the mandatory contribution into the Fund's account together with the declaration and payment of the special consumption tax and it shall be deductible when determining the taxable income for corporate income tax.

b) The deadline for declaring and paying the mandatory contribution shall be carried out in accordance with the regulations on the deadline for declaring and paying the special consumption tax. The Ministry of Finance shall prescribe the form for declaring the mandatory contribution.

4. Violations in the management and collection of mandatory contributions shall be subject to administrative penalties under the law on administrative violations in the health sector as follows:

a) Violation of procedures related to mandatory contributions;

b) Late payment of mandatory contributions;

c) Incorrect declaration leading to underpayment of mandatory contributions;

d) Fraud and evasion of mandatory contributions.

Article 5. State Management of the Fund

1. The Ministry of Health shall be responsible for state management of the Fund

Annually, the Ministry of Health shall take the lead in reporting to the Prime Minister on the results of the Fund's operations and its management and utilization.

2. The Ministry of Finance shall provide guidance on the financial management and accounting system of the Fund; mechanisms and procedures for collecting and remitting mandatory contributions and recording mandatory contributions of the Fund.

Article 6. Implementation Provisions

1. This Decision shall take effect from September 15, 2013.

2. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, and related organizations and individuals shall be responsible for implementing this Decision./.