Decision No. 45/2014/QD-UBND dated August 20, 2014, collection of environmental protection fee charged for sewage in Hanoi

DECISION

COLLECTION OF ENVIRONMENTAL PROTECTION FEE CHARGED FOR SEWAGE IN HANOI

THE PEOPLE’S COMMITTEE OF HANOI

Pursuant to the Law on Organization of the People’s Councils and the People’s Committees dated November 26, 2003;

Pursuant to the Law on Legislative Documents of the People’s Council and the People’s Committee dated December 3, 2004;

Pursuant to the Ordinance on Fees or Charges No. 38/2001/PL-UBTVQH10 dated August 28, 2001;

Pursuant to the Government’s Decree No. 57/2002/NĐ-CP dated June 3, 2002 on providing specific regulations on implementation of the Ordinance on Fees or Charges;

Pursuant to the Government’s Decree No. 24/2006/NĐ-CP dated March 6, 2006 on amending and supplementing several articles of the Government’s Decree No. 57/2002/NĐ-CP dated June 3, 2002 on providing specific regulations on implementation of the Ordinance on Fees or Charges;

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Pursuant to the Government’s Decree No. 25/2013/NĐ-CP dated March 29, 2013 on environmental protection fee for sewage disposal;

Pursuant to the Circular No. 63/2002/TT-BTC of the Ministry of Finance dated July 24, 2002 on providing guidance on implementation of legal regulations on fees and charges;

Pursuant to the Circular No. 45/2006/TT-BTC of the Ministry of Finance dated May 25, 2006 on amending and supplementing the Circular No. 63/2002/TT-BTC of the Ministry of Finance dated July 24, 2002 on providing guidance on implementation of legal regulations on fees and charges;

Pursuant to the Joint Circular No. 63/2013/TTLT-BTC-BTNMT dated May 15, 2013 of the Ministry of Finance and the Ministry of Natural Resources and Environment on providing guidance on implementation of the Government's Decree No. 25/2013/NĐ-CP dated March 29, 2013 on the environmental protection fee for waste water disposal;

Pursuant to the Circular No. 156/2013/TT-BTC of the Ministry of Finance dated November 6, 2013 on providing guidance on implementation of several articles of the Law on Tax Administration; the Law on the amendments to the Law on Tax Administration and the Government’s Decree No. 83/2013/NĐ-CP dated July 22, 2013;

Pursuant to the Circular No. 186/2013/TT-BTC of the Ministry of Finance dated December 5, 2013 on providing guidance on imposition of penalties for administrative violations against regulations on the management of fees or charges;

Pursuant to the Circular No. 02/2014/TT-BTC of the Ministry of Finance dated January 2, 2014 on providing guidance on fees and charges within the decision-making authority of the People's Councils of centrally-affiliated cities or provinces;

Pursuant to the Resolution No. 05/2014/NQ-HĐND dated July 9, 2014, approved in the 10^th plenary meeting of the People’s Council (Tenure XIV), on promulgating and canceling several regulations on collection of fees or charges throughout Hanoi within the decision-making authority of the People’s Council of Hanoi;

At the request of the Tax Department of Hanoi, the Department of Finance, the Department of Justice – the State Treasury of Hanoi made at the Request No. 30039/TTrLN: CT-STC-TP-KBNN dated June 18, 2014,

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Article 1. Entities required to pay or exempted from paying fee

1. Entities paid for the environmental protection fee charged for their sewage discharged into the environment shall include:

a) Family households;

b) Regulatory agencies;

c) People’s armed forces (exclusive of the manufacturing or processing facilities affiliated to these people’s armed forces);

d) Main offices, branches or offices of organizations or individuals which are not attached to their manufacturing or processing facilities;

dd) Facilities providing car, motorbike wash or repair services;

e) Hospitals; clinics; restaurants, hotels; training and research institutes; other trading or service businesses.

g) Organizations or individuals other than the abovementioned entities that discharge wastewater which is not the industrial one and are governed by Clause 1 Article 1 of the Joint Circular No. 63/2013/TTLT-BTC-BTNMT dated May 15, 2013.

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2. Entities exempted from paying fee

a. Sewage discharged from the family households residing at the areas where the Government gives them the subsidized price of water to meet the socioeconomic living standard;

b. Sewage drained from the family households living at the areas where the clean water supply system has not been available yet;

c. Sewage drained from the non-business family households living at the areas where the clean water supply system has been already available, but consuming their self-extracted water.

d. Sewage drained from the family households living at rural villages, including mountainous, highland and remote areas (according to the Governmental regulations on frontier, mountainous and remote hamlets);

e. If manufacturing or processing facilities governed by Clause 1 Article 1 of the Joint Circular No. 63/2013/TTLT-BTC-BTNMT dated May 15, 2013 consuming water supplied by facilities specializing in supply of clean, underground or surface water has been liable to pay the environmental protection fee for the industrial wastewater, or the wastewater disposal under the provisions of the Government’s Decree No. 88/2007/NĐ-CP dated May 28, 2007 on the wastewater disposal for urban areas or industrial zones, they shall be exempted from paying the environmental protection fee charged for sewage disposal.

Article 2. Fee payer

1. The payer of the environmental fee for their sewage, including family households, organizations or individuals who discharge their sewage into the environment, shall be charged for such fee.

2. If any organization or individual has discharged their sewage into the wastewater disposal system and has paid the wastewater disposal fee, the organization in charge of managing and operating that disposal system shall become the payer of the environmental protection fee charged for the volume of wastewater received or drained into the environment.

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1. With respect to the fee payer consuming water supplied by the clean water supply organization:

a. The rate charged for the environmental protection fee paid for sewage disposal shall equal 10% of the clean water selling price (value-added tax has not been included yet).

b. Fee calculation formula:

The amount of environmental protection fee charged for sewage payable

=

The volume of clean water consumed by the fee payer

x

The selling price of clean water before VAT (VND/m³)

x

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2. With respect to the fee payer consuming the self-extracted water:

a. Fee amount:

No.

Categorization of fee payers

Unit of measurement

Fee amount

Valid until Sept. 30, 2015

Valid from Oct. 1, 2015

1

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VND/person/month

500

600

2

Hospitals, clinics; training or research institutes;

VND/m³

900

1.000

3

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VND/m³

1,000

1,500

4

Hotels, restaurants; other trading or service businesses (those discharging wastewater which is not the industrial wastewater

VND/m³

2,000

2,500

b. Fee calculation formula:

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The amount of environmental protection fee charged for sewage payable (VND/month)

=

The number of employees / organization

x

Fee amount (VND/person/month)

The number of employees shall be determined according to the time sheet, payroll and employment contracts (applicable to non-manufacturing or non-processing organizations).

* As for the entities specified in No.1, 2 and 3 of this fee schedule

The amount of environmental protection fee charged for sewage payable (VND/month)

=

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x

Fee amount (VND/m³)

The volume of water consumed shall be determined as follows:

- If any entity permitted to extract underground water has not installed the water meter to measure the volume of water extracted, the volume of water consumed as the basis for calculating fee shall be based on the volume specified in the permit for underground water extraction.

- If any entity permitted or not yet permitted to extract underground water has installed the water meter to measure the volume of water extracted, the volume of water consumed as the basis for calculating fee shall be based on the volume of extracted underground water indicated by the water meter.

- If entities do not hold the permit for underground water extraction, or have not installed the water meter, they are required to declare the volume of water consumed to serve as the basis for calculating fee based on the pump capacity according to the following formula: the fee-charged water volume (m³) = the pump capacity (m³/h) x pumping length of time (h), or depending on their scale of operation or service.

+ These entities shall submit their self-declared water volume consumed for fee calculation; the People's Committees of communes, wards and towns shall verify and decide the fee amount payable.

Article 4. Fee collecting agency

1. The clean water supply organization shall collect the environmental protection fee charged for sewage discharged from organizations or individuals, and concurrently collect the clean water consumption charge on a monthly basis. Organizations or individuals being the payers of fee charged for sewage shall be liable to pay the full amount to clean water supply organizations, concurrently pay the clean water consumption fee defined in the sales invoice on a monthly basis.

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Article 5. Management and use of collected fee

1. Clean water supply organizations shall hand 92% of the fee amount in to the state budget and shall be entitled to retain 8% of the fee amount to pay for any expense incurred from their fee collection activities.

2. The People’s Committees of communes, wards and towns shall hand 85% of the fee amount in to the state budget and shall be entitled to retain 15% of the fee amount to pay for any expense incurred from their fee collection activities.

3. Clean water supply organizations, People’s Committees of communes, wards and towns, shall open an account titled "Provisional collection of the environmental protection fee charged for sewage” at the State Treasury branch located in their area. Depending on the amount of environmental protection fee collected, these organizations shall decide whether such amount shall be deposited in the provisional collection account on a daily or weekly basis. By 20^th day of the following month at the latest, clean water supply organizations, People’s Committees of communes, wards and towns, shall be responsible for depositing such amount in the provisional collection account of the State Treasury on a monthly basis, after deducting the fee amount retained in accordance with legal regulations.

4. Clean water supply organizations, People’s Committees of communes, wards and towns, shall be responsible for calculating the collected amount of environmental protection fee charged for sewage on a monthly basis, and then preparing the Fee Declaration statement according to the form No. 01/PHLP enclosed herewith for submission to the Tax Department located in the area.

Clean water supply organizations, People’s Committees of communes, wards and towns, shall be required to create their own accounting records to keep track of the collected amount of environmental protection fee charged for sewage. The environmental protection fee collected shall not be recorded into the financial report as the revenue of these clean water supply organizations.

5. Every year, within a permitted period of 90 days from January 1 of the following year, clean water supply organizations, People’s Committees of communes, wards and towns, shall be responsible for carrying out the tax finalization at the local tax department for their collected amount of environmental protection fee, and preparing the tax finalization statement according to the form No. 02/PHLP issued together with the Circular No. 156/2013/TT-BTC for submission to the Tax Administration Department in the area.

6. Clean water supply organizations shall make an annual data report on the environmental protection fee charged for sewage in their areas and notify the Department of Natural Resources and Environment by completing the form No. 06 issued together with the Circular No. 63/2013/TTLT-BTC-BTNMT before March 31 of the subsequent year.

The Department of Natural Resources and Environment shall prepare an annual data report on the environmental protection fee charged for sewage throughout Hanoi by completing the form No. 05 issued together with the Circular No. 63/2013/TTLT-BTC-BTNMT for submission to the Ministry of Natural Resources and Environment before March 31 of the subsequent year.

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- Clean water supply organizations shall use sales invoice according to the regulations laid down in the Circular No. 39/2014/TT-BTC of the Ministry of Finance dated March 31, 2014 on providing guidance on implementation of the Government’s Decree No. 51/2010/NĐ-CP dated May 14, 2010 and the Government’s Decree No. 04/2014/NĐ-CP dated January 17, 2014 on stipulating sales or service provision invoices.

- The People’s Committees of communes, wards and towns shall use the fee-collection receipt issued by the tax department.

Article 7. Violation settlement

All violations shall be handled in accordance with the Government’s Decree No. 109/2013/NĐ-CP dated September 24, 2013 on stipulating penalties for administrative violations against regulations on price, fee, charge and invoice management, and the Circular No. 186/2013/TT-BTC of the Ministry of Finance dated December 5, 2013 on providing guidance on imposition of penalties for violations against regulations on fee and charge management.

Article 8. Effect

This Decision shall come into force after 10 days from the signing date and replace the Decision No. 26/2009/QĐ-UBND of the People’s Committee of Hanoi dated January 9, 2009 on collection of environmental protection fee charged for sewage throughout Hanoi. Other contents which are not stipulated by this Decision shall be carried out under the guidance of the Joint Circular No. 63/2013/TTLT-BTC-BTNMT dated May 15, 2013 of the Ministry of Finance and the Ministry of Natural Resources and Environment on providing guidance on implementation of the Government’s Decree No. 25/2013/NĐ-CP dated March 29, 2013 on environmental protection fee charged for sewage.

Article 9. Implementation

The Chief of the Office of the People’s Committee of Hanoi; the Director of Departments: Finance, Natural Resources and Environment; the Director of the State Treasury of Hanoi; the Director of the Tax Department of Hanoi; the President of the People’s Committee of districts or towns; the President of communes, wards or towns; clean water supply organizations and other relevant organizations or individuals, shall be responsible for implementing this Decision./.

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PP. PEOPLE’S COMMITTEE
PP. THE PRESIDENT
THE VICE PRESIDENT




Nguyen Van Suu