Circular No. 4800/TC-CST regarding the implementation of the Ordinance on Fees and Charges

LETTER

OF THE MINISTRY OF FINANCE NO. 4800/TC-CST ON MAY 7, 2004
REGARDING THE IMPLEMENTATION OF FEES AND CHARGES LEGISLATION

Respected: People's Committees of provinces and centrally governed cities.

On August 28, 2001, the Standing Committee of the National Assembly issued the Ordinance on Fees and Charges, which came into effect from January 1, 2002. In line with the objectives and requirements set out in the Ordinance on Fees and Charges, under the leadership of the Party and the close guidance of the Government, the Party committees, local authorities at all levels, and relevant sectors have achieved initial results in the two years since its implementation. Specifically:

Following the issuance of the Ordinance on Fees and Charges, the Government promulgated Decree No. 57/2002/NĐ-CP dated June 3, 2002 to detail provisions delegated by the Ordinance on Fees and Charges for further elaboration. To ensure synchronized implementation nationwide, on June 11, 2002, the Prime Minister issued Directive No. 13/2002/CT-TTg requiring relevant sectors and levels to promptly organize the implementation of the Ordinance of the Standing Committee of the National Assembly and the Government’s Decree on fees and charges. AT central level, the Ministry of Finance established a Permanent Steering Group for the implementation of the Ordinance on Fees and Charges, headed by a Deputy Minister. AT local level, most provinces and centrally governed cities have also established permanent steering groups for the implementation of the Ordinance on Fees and Charges in each province and city (according to reports, 56 out of 64 provinces and cities have established and maintained these groups regularly) with the core being leaders from the Department of Finance, Department of Justice, Tax Bureau, and some large districts and counties. Some localities did not establish such groups but the implementation of the Ordinance on Fees and Charges was still assigned to the Department of Finance, Tax Bureau, State Treasury, and other related agencies.

The activities of the permanent steering groups at the local level have served well, enabling timely measures to be taken by relevant sectors and local authorities to address disorderly situations regarding fees and charges at various levels, particularly at the grassroots level. The results of implementing the Ordinance on Fees and Charges over the past period have yielded significant initial outcomes in accordance with the set objectives and requirements:

1. Order and discipline have been restored in the issuance, collection, management, and utilization of fees and charges:

- Unlawfully issued fees and charges have been abolished.

- Types of fees and charges listed in the Directory with guiding documents continue to be implemented; types without guiding documents are not organized for implementation.

Thus, up to now, unlawfully issued fees and charges have been abolished; those still in force are subject to state control.

2. Successfully implemented the abolition of free pass cards for road tolls and the collection of road tolls according to new regulations (from March 1, 2003):

- Ensured smooth traffic flow without congestion.

- All traffic participants have fully complied with the payment of tolls as prescribed (including vehicles of press, military, police, court, prosecution, diplomatic agencies...).

- Reduced transportation costs for businesses due to a general reduction of 20% and the introduction of monthly, quarterly, route, and annual tickets (with lower rates than single-use tickets; for multiple uses in a day, the total fee paid is significantly reduced).

- Standardizing toll rates and improving ticket formats has facilitated both payers and toll collectors, making management easier and more transparent.

3. Contributed to the successful implementation of Resolution No. 13/2002/NQ-CP of the Government on traffic safety and serving the 22nd Southeast Asian Games and the Second ASEAN Para Games:

- Submitted to and promulgated a decree increasing the registration fee for motorcycles and passenger cars in urban areas to limit their use in cities.

- Guided on fees for the temporary storage of vehicles seized for violations of traffic laws.

- Amended rules, fee schedules, and liability limits for mandatory civil liability insurance for motor vehicles to higher levels.

- Guided on the exemption of road tolls for vehicles transporting athletes, officials, guests, and service vehicles for the 22nd Southeast Asian Games and the Second ASEAN Para Games. Exempted airport departure and arrival fees for related individuals. Exempted road tolls for trucks passing through Nam Duong Bridge and Vinh Thanh Toll Station (encouraging use of Thang Long Bridge) to avoid traffic congestion during the Games.

4. Contributed to the promotion of socialization and administrative reform as advocated by the Party and the State:

Establishing fee rates and managing and utilizing collected fees based on the principle of ensuring cost recovery and aligning with contributors' capacity; retained fees must cover the costs of collecting fees and remain stable for a certain period, promoting socialization in fee collection activities in several fields (administration, education, healthcare, transportation...), allowing fee collection units to be more autonomous, decide appropriate staffing, pay salaries and bonuses, improve the quality of fee collection services provided to society, ensuring that workers can fully utilize their creativity, increase income, and create mechanisms to mobilize contributions from all economic sectors, organizations, and citizens to participate in developing fee-based services.

5. Contributed to reducing production and business input costs, especially for export goods:

The review to immediately abolish fees and charges that are not permitted to be collected has focused on timely reviewing and amending large fees and charges related to business input costs, contributing positively to the implementation of Resolution No. 05/2002/NQ-CP of the Government on accelerating and enhancing the effectiveness of import and export activities and Directive No. 08/2003/NQ-CP of the Prime Minister on enhancing the efficiency and competitiveness of businesses. Specifically:

- Abolish fees and charges issued in violation of regulations.

- Amend the system for collecting road and bridge usage fees; improve road and bridge usage fee tickets (with various types of tickets), reducing transportation costs for businesses from purchasing road and bridge usage fees.

- Unify the fee collection levels between domestic enterprises and foreign-invested enterprises; between Vietnamese citizens and foreigners.

- Adjust and reduce fees and charges in the maritime sector (by 30% compared to before).

- Abolish animal and plant quarantine fees, animal and plant product export quarantine fees. Waive customs charges for exported goods...

6. Revenue from fees and charges:

Although many improperly issued fees and charges have been abolished, and the overall level of fee and charge collection has decreased, due to better management and reduced evasion, revenue from fees and charges remains assured.

During the implementation of the Ordinance on Fees and Charges (from January 1, 2002), the Ministry of Finance maintained regular reports to the Prime Minister on the implementation status of sectors and localities. Based on this, on January 14, 2004, the Prime Minister agreed to continue the operation of the Standing Steering Committee for the Implementation of the Ordinance on Fees and Charges (at central and local levels) until December 31, 2004. The Ministry of Finance will coordinate with relevant ministries and localities to expedite the issuance of guidance documents for the collection of fees and charges listed in the detailed list but without guidance documents; continue to review and improve the current fee and charge collection mechanisms and policies (including road and bridge usage fees) to ensure consistent and unified implementation, reduce production and export input costs, promote administrative reform in the field of fees and charges (Circular No. 228/VPCP-KTTH of the Government Office - attached).

To implement the Prime Minister's opinion on the enforcement of the Ordinance on Fees and Charges, to maintain and enhance the achieved results, the Ministry of Finance requests the People's Committees of provinces and centrally-administered cities to focus on implementing the following key tasks:

* Continue the operation of the Standing Steering Committee on Fees and Charges to grasp the actual implementation situation; guide the handling of emerging issues, assist all levels of government in effectively managing fees and charges; maintain the established order and discipline; prevent unauthorized fee and charge collection; promote administrative reform in the field of fees and charges.

* For those fees listed in the Detailed List of Fees and Charges that still lack guidance documents, continue to study and issue guidance documents to ensure consistent fee and charge collection.

* For currently valid fees: Continue to review and amend unreasonable aspects to perfect the fee and charge policy system, as well as ensure fairness in service provision for organizations and individuals, reduce production and export input costs. Amend fees with differentiated collection rates between Vietnamese and foreign individuals to comply with Vietnam's WTO commitments.

* Continue to promote publicity about fee and charge work through appropriate methods to maintain achieved results, while informing the public and enabling them to supervise implementation at each locality.

The Ministry of Finance hereby informs localities to continue organizing and implementing the Ordinance on Fees and Charges according to regulations, achieving the set goals and requirements.