Circular No. 9-TC/QLNS guides the regulation of salt tax for village budgets.

CIRCULAR

OF THE MINISTER OF FINANCE NUMBER 9-TC/QLNS ON AUGUST 6, 1982 GUIDING THE REGULATION OF SALT TAX FOR COMMUNE BUDGETS

Pursuant to Decree No. 108-CP dated May 13, 1978 of the Council of Ministers on responsibilities and authorities for financial management and budget of state administrative bodies at provincial and district levels.

Pursuant to Decision No. 91-TTg dated April 15, 1981 of the Prime Minister and Decision No. 34-CT dated August 5, 1981 of the Chairman of the Council of Ministers on adjusting purchase prices and retail prices of salt in northern and southern provinces and cities;

The Ministry of Finance issued Circular No. 11-TC/CTN dated May 28, 1981 guiding the implementation of salt tax collection system. Now, the Ministry of Finance guides the implementation of salt tax regulation for commune budgets as follows:

1. Salt tax is a commercial and industrial tax and has been regulated partially for provincial and city budgets under Decision No. 14-TC/QLNS dated May 24, 1980 of the Ministry of Finance. Now, it is necessary to regulate salt tax for commune budgets with salt production purposes:

Ensuring increased revenue for commune budgets, creating conditions for commune authorities engaged in salt production to have financial means to fulfill their duties and tasks;

- Encouraging commune authorities engaged in salt production to actively assist salt production facilities and state salt purchasing organizations to complete national targets on salt production and purchasing, preventing illegal salt trade, tax evasion, and smuggling, ensuring that the majority of locally produced salt is concentrated in the hands of the state.

2. Based on the situation of salt production, purchasing, and submission to the state, and the collection of salt tax in each salt-producing region, the Ministry of Finance sets a general ratio for the entire province and city to regulate salt tax for commune budgets engaged in salt production as follows:

- Ha Nam Ninh Province is regulated at an average rate of 2% of the salt tax collected locally for commune budgets.

- Nghe An Province is regulated at an average rate of 3%.

- Hai Phong City, Thai Binh Province, Thanh Hoa Province 5%.

- Quang Ninh Province, Binh Tri Thien Province 10%.

- Southern provinces and cities (from Quang Nam - Da Nang southward) 5%.

Based on the above regulation ratios, Provincial People's Committees and municipal people's committees shall specify the regulation ratios of salt tax for each commune engaged in salt production, ensuring that the total amount of salt tax allocated for commune budgets in the province or city does not exceed the average percentage ratio set by the Ministry of Finance for each locality.

3. After the salt tax has been allocated to commune budgets according to the regulation ratio specified by the provincial or municipal people's committee, the remaining salt tax is considered as 100% of the national budget revenue. This revenue is then regulated among three levels of budget: central, provincial or municipal, and district level according to the regulation ratio already stipulated in Decision No. 14-TC/QLNS dated May 24, 1980 of the Ministry of Finance regarding commercial and industrial taxes. For example, Province X engages in salt production. The regulation ratio of commercial and industrial taxes (including salt tax) reserved for local budgets by the central government is 75%, and the provincial people's committee specifies a regulation ratio of this tax type for District Y's commune budget engaged in salt production as 40%, leaving 35% for the provincial budget. In case Commune A in District Y produces and submits 1000 tons of salt to the state. The tax rate on salt in this area is 750 dong per ton. The provincial people's committee specifies the regulation ratio of salt tax for Commune A's budget as 2%. Therefore, the distribution of salt tax revenue among the three levels of budget is carried out as follows:

Total salt tax revenue in Commune A is: 750 dong x 1000 tons = 750,000 dong

Salt tax revenue allocated for Commune A's budget: 750,000 dong x 2% = 15,000 dong.

The remaining salt tax (after allocation to Commune A's budget) is 750,000 dong - 15,000 dong = 735,000 dong, which is considered as 100% of the revenue submitted to the national budget and is distributed among the three levels of budget according to the current regulation ratio of commercial and industrial taxes:

1. Revenue into the central government budget:

735,000 dong x 25% = 183,750 dong

2. Revenue into the provincial X budget:

735,000 dong x 35% = 257,250 dong

3. Revenue into the district Y budget:

735,000 dong x 40% = 294,000 dong.

4. The portion of salt tax regulated for each salt-producing commune is deducted according to the regulation ratio decided by the provincial or municipal people's committee for each commune; the unit responsible for submitting salt revenue must base on this decision to issue two payment receipts: One receipt for submission to the commune budget, and one receipt for submission to the district, provincial or municipal, and central government budgets. The State Bank branch in the district records the portion of salt tax allocated for each commune's budget into the sub-account of that commune under account 770 (commune budget) opened at the State Bank branch in the district.

Implementing Circular No. 5-TT/LB dated March 7, 1979 of the Ministry of Finance - State Bank of Vietnam, the County Financial Price Bureau needs to strengthen supervision over the accounting of salt tax revenue collected within the county and its distribution among central, provincial, municipal, district, and commune budgets; if any errors are found, they should promptly notify the State Bank branch in the district to correct them.

5. This circular takes effect from October 1, 1982.

Provincial and municipal people's committees with salt-producing regions need to urgently implement calculations and decisions on the regulation ratio of salt tax for commune budgets engaged in salt production, strictly guide adjustments to the 1982 budget plans of communes engaged in salt production, and report results to the Ministry of Finance.