JOINT CIRCULAR No. 52-TT/LB Supplementing and Amending Certain Points Regarding the Implementation of Traffic Fee Collection Systems for Road and River Transport

CIRCULAR

OF THE JOINT MINISTRY OF FINANCE - TRANSPORT AND POST DECREE NO. 52-TT/LB DATED SEPTEMBER 19, 1991 AMENDING AND COMPLEMENTING CERTAIN POINTS REGARDING THE IMPLEMENTATION OF THE SYSTEM FOR CHARGING TRAFFIC FEES ON ROADS AND RIVERS

Implementing Decision No. 211-HĐBT dated November 9, 1987 of the Council of Ministers on charging traffic fees for roads and rivers, and Circulars No. 66-TT/LB dated December 4, 1987, No. 56-TT/LB dated December 26, 1988, and No. 58-TT/LB dated December 14, 1989 of the Joint Ministry of Finance - Transport to guide the implementation of the system for charging traffic fees has initially achieved good results, increasing revenue to fund road and river maintenance work.

To create conditions for localities to organize collection and use more effectively, encouraging vehicle owners to pay traffic fees. The Joint Ministry of Finance - Transport and Post adjusts, amends, and supplements certain points as follows:

1. All cargo transport vehicles on roads and rivers shall be charged traffic fees based on the number of registered vehicles; passenger transport vehicles on roads and rivers shall be charged traffic fees based on the number of seats/month designed (or registered for business). Specific objects and rates are detailed in the attached appendix to this circular.

2. Road and river traffic fees shall be collected by the Department of Transportation to fund management and repair of the road and river systems under local administration. To ensure that the collected funds quickly serve management and repair work, the Joint Ministry agrees that the Departments of Transportation may open bank accounts at local State Treasury Branches for traffic fee collections and comply with all procedures stipulated by the State Treasury regarding account opening and usage. All daily collected funds must be deposited into the State Treasury. At the same time, the Departments of Transportation have the right to withdraw funds to cover management and repair work according to approved plans. To strictly manage the income and expenditure of traffic fees, it is required that the Departments of Transportation:

- Prepare plans for traffic fee income and expenditure and plans for management and repair expenditures, submit them to the People's Committee of the province for approval as the basis for implementation. Approved plans must be sent to the State Treasury Branches for monitoring and management.

- Quarterly and annually, the Departments of Transportation must settle accounts with the Department of Finance regarding traffic fee income and expenditure. Simultaneously, the Departments of Transportation must send settlement reports on traffic fee income and expenditure to the Ministry of Transport and Post (through the Financial Accounting Department) for monitoring.

3. Objects eligible for reduced traffic fees include:

- Transport vehicles of enterprises operating both on dedicated routes and public transportation routes.

- Transport vehicles of enterprises engaged in seasonal production and business activities.

- Vehicles undergoing regular maintenance or temporarily out of service due to lack of cargo.

The Joint Ministry entrusts the Departments of Transportation and Finance to inspect and review these reduction cases, submitting them to the provincial People's Committees for examination and decision (specific reduction rates should be based on the specific operational circumstances of each object).

4. Traffic fees shall be collected by the locality where the transport vehicle is registered. In practice, most transport vehicles are registered in Hanoi and Ho Chi Minh City, while mountainous provinces and the Central Highlands have many roads but few registered vehicles. To support part of the funding for northern mountainous provinces and the Central Highlands, the Joint Ministry agrees to redistribute up to 15% of the annual traffic fee revenues from Hanoi and Ho Chi Minh City to assist these provinces in repairing bridges and roads. The redistribution of traffic fee revenues and the assistance plan for localities will be directed by the Ministry of Transport to implement.

5. Costs for organizing traffic fee collection such as printing stamps, forms, receipts, books, organizational structure, publicity, inspection... The Joint Ministry stipulates the following extraction ratios:

- For localities with annual revenue of 2 billion dong or more, 3% of total revenue can be extracted.

- For localities with annual revenue less than 2 billion dong, 4% of total revenue can be extracted.

Each year, the Departments of Transportation must prepare detailed budgets for submission to the Department of Finance for approval as the basis for implementation.

6. To encourage vehicle owners to pay traffic fees ahead of schedule, the Joint Ministry stipulates:

- A 10% reduction in the amount payable for those who pay the full year's traffic fees in advance (from the first month of the year).

- A 5% reduction in the amount payable for those who pay traffic fees six months in advance.

These provisions take effect from October 1, 1991. Other regulations concerning the system for collecting traffic fees not mentioned in this circular continue to be implemented according to Decision No. 211-HĐBT dated November 9, 1987 of the Council of Ministers and Circulars No. 66-TT/LB dated December 4, 1987 and No. 58-TT/LB dated December 14, 1989 of the Joint Ministry of Finance - Transport guiding the implementation of traffic fee collection for roads and rivers.