Circular No. 9/TC-QLNS guiding the regulation of salt tax for commune budgets

CIRCULAR

OF THE MINISTER OF FINANCE NO. 9/TC-QLNS
DATE AUGUST 6, 1982 GUIDING THE REGULATION OF SALT TAX FOR COMMUNE BUDGETS
Article 1. Pursuant to Decree No. 108-CP dated May 13, 1978 of the Council of Ministers on financial management responsibilities and authorities of provincial and district state administrative bodies.

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 salt purchase prices and retail prices 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 the salt tax collection system. Now, the Ministry of Finance guides the implementation of the regulation of salt tax 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 aimed at:

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 and plans for salt production and procurement, preventing illegal salt trade, tax evasion, and smuggling, ensuring that the vast majority of locally produced salt is concentrated in the hands of the state.

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

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

- Nghe Tinh Province is regulated at an average 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, the People's Committees of provinces and cities shall specify the regulation ratio 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.

After the salt tax has been allocated to the commune budget according to the regulation ratio specified by the People's Committee of the province or city, the remaining salt tax is considered as 100% of the national budget revenue. This revenue is then regulated among the three levels of central, provincial, and district budgets 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 People's Committee of that province specifies a regulation ratio of this type of tax for the district Y's budget with a salt-producing area as 40%, leaving 35% for the provincial budget. In the case where Commune A belongs to 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. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The People's Committee of the province specifies the regulation ratio of salt tax allocated for the Commune A 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: 750 dong x 1000 tons = 750,000 dong. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).Salt tax revenue allocated for the Commune A budget: 750,000 dong x 2% = 15,000 dong. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The remaining salt tax (after allocation to the Commune A 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: Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).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 commune engaged in salt production is deducted according to the regulation ratio decided by the People's Committee of the province or city for each commune; the entity responsible for submitting salt revenue must base its decisions on these regulations to issue two payment receipts: One receipt for submission to the commune budget, and one receipt for submission to the district, provincial, and central government budgets. The State Bank of Vietnam at the district level 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 of Vietnam at the district level.

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

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

People's Committees of provinces and cities with salt-producing areas need to urgently implement calculations and decide on the regulation ratio of salt tax for commune budgets engaged in salt production, strictly guide adjustments to the 1982 budget revenue and expenditure plans of communes engaged in salt production, and report the results to the Ministry of Finance.

735000 VND x 35% = 257250 VND

3. Revenue deposited into the Y district budget:

735000 VND x 40% = 294000 VND.

4. The portion of salt tax allocated for each salt-producing commune shall be extracted according to the adjustment ratio determined by the provincial and municipal People's Committees for each commune. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The entity collecting salt revenue must base its actions on such decisions to prepare two payment receipts: One receipt for depositing into the commune budget, and another for depositing into the district, provincial, municipal, and central government budgets. The State Bank branch at the county level shall record the portion of salt tax allocated for the commune budget under the commune's sub-account in account 770 (commune budget) opened at the State Bank branch at the county level.

Implement Circular No. 5-TT/LB dated March 7, 1979, jointly issued by the Ministry of Finance and the State Bank of Vietnam, the County Financial Price Control Office needs to strengthen supervision over the accounting of salt tax revenues collected within the county area and distributed among the central, provincial, municipal, district, and commune budgets; if any errors are detected, they should promptly notify the State Bank branch at the county level to correct them.

This Circular takes effect from October 1, 1982.

Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).Provincial and municipal People's Committees with salt-producing areas need to urgently implement calculations and decide on the adjustment ratios for salt tax allocations to the salt-producing commune budgets, strictly guide adjustments to the 1982 budget plans of communes engaged in salt production, and report the results to the Ministry of Finance.