CIRCULAR

Regulations on Uniform System for Extra Cost Deductions from Production Costs and Circulation Fees

The current extra cost deductions from production costs and circulation fees are being applied according to Circular No. 151-TTg dated December 29, 1969, of the Prime Minister's Office and Circular No. 23-TC/VP dated January 14, 1970, of the Ministry of Finance, which was amended by Circular No. 186-TTg dated July 2, 1971, of the Prime Minister's Office, and supplemented by other documents (Decisions No. 140-TTg dated December 29, 1969, Circular No. 243-TTg dated October 9, 1974, and Decision No. 864-VP6 dated March 1, 1979, etc.).

When applying the unified planning and accounting system for production costs and circulation fees in the South, Circular No. 17-TC/CNXD dated December 15, 1977, of the Ministry of Finance allowed enterprises in the South to deduct extra cost deductions from production costs and circulation fees from their enterprise profits paid to the state budget. Thus, although these extra cost deductions were accounted for separately, enterprises still ensured coverage of these expenses from their own income (in essence, these were subsidies to ensure actual wages for workers such as subsidies for communal meals, price adjustments for non-rice foodstuffs, cloth price adjustments, hardship allowances, etc., which should have been fully included in production costs and circulation fees).

Pending improvements in financial management systems for state-owned enterprises, the Ministry of Finance hereby regulates the uniform system for extra cost deductions from production costs and circulation fees as follows:

1\. As of April 1, 1982, the Ministry of Finance will no longer allocate extra cost deductions from production costs and circulation fees to enterprises in the North. These deductions will be subtracted from enterprise profits paid to the state budget, similar to enterprises in the South.

2\. Enterprises in both the South and the North must still plan these extra cost deductions within their financial revenue and expenditure plans, submit them to the state financial authorities for monitoring, inspection, and approval of the reduction from enterprise profits paid to the state budget.

3\. Enterprises will settle accounts with the state budget for extra cost deductions from production costs and circulation fees based on actual expenditures.

In cases where enterprises in the North have already received allocations for the first quarter of 1982, they must settle accounts with the state budget based on actual expenditures; any surplus must be remitted to the state budget, and any shortfall may be deducted from the profit paid to the State Bank in 1982.

In cases where enterprises in the North have not yet received allocations for the first quarter of 1982, they may use any surplus remaining after settlement of accounts for 1981, and any shortfall may also be deducted from the profit paid to the state budget in 1982, with no further allocations required from the state budget.