THE MINISTRY OF FINANCE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
No: 76/2000/TT-BTC | Hanoi, July 25, 2000 |
CIRCULAR
GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’S DECISION No.219/1999/QD-TTg OF NOVEMBER 11, 1999 ON THE POLICY OF PROTECTING THE INTEREST OF PEOPLE IN LOCALITIES WHERE MINERALS ARE EXPLOITED AND/OR PROCESSED AND PROTECTING UNTAPPED MINERAL RESOURCES
On November 11, 1999, the Prime Minister issued Decision No.219/1999/QD-TTg on the policy of protecting the interest of people in localities where minerals are exploited and/or processed and protecting untapped mineral resources. After reaching an agreement with the Ministry of Planning and Investment, the Ministry of Industry, the Ministry of Agriculture and Rural Development, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Construction and the General Land Administration, the Ministry of Finance hereby guides the implementation of the said Decision as follows:
I. APPLICATION OBJECTS AND SCOPE
1. Subjects entitle to the interest protection policies guided in this Circular include organizations, households and individuals that are lawfully residing and engaged in production in localities where minerals are available, and have to change their places of residence and/or production under decisions of the competent State agency(ies) for mineral exploitation and/or processing or protection of untapped mineral resources.
2. Organizations and individuals permitted to exploit and/or process minerals shall have to compensate for damage caused by mineral exploiting and/or processing activities to organizations, households and/or individuals that, under the impact of such activities, have to change their places of residence and/or production as guided in this Circular, in order to ensure the latter’s interest.
3. The State protects the interests of organizations, households and individuals in localities, where minerals are exploited and/or processed or where mineral resources are available but remain untapped and need protection, through policies on investment in socio-economic infrastructure development, life and production protection and stabilization. The State shall allocate sufficient funds for implementation of optional plans for protection of untapped mineral resources.
II. THE REALIZATION OF PROTECTION POLICIES
1. Organizations and individuals permitted to exploit and/or process minerals shall have to:
1.1. Compensate for damage caused to land and property affixed thereto of organizations, households and individuals that have to change their places of residence and/or production under the impact of mineral exploiting and/or processing activities according to the State’s current regulations.
1.2. Render supports for stabilizing the life and production of organizations, households and individuals that have to change their places of residence and/or production under the impact of mineral exploiting and/or processing activities, concretely as follows:
- Allowances for stabilizing the life and production of inhabitants, who have to change their places of residence for 6 months, with a pecuniary level for one person per month being equivalent to 30 kg of rice at the average market price in the locality at the time of compensation;
- Lay-off allowances for laborers of production and/or business establishments (excluding those working under short-term contracts or piece-work contracts) during their production and business cessation for their relocation, which, however, shall be paid for no more than one (01) year. The allowance level shall be equal to the grade wage of each eligible official or employee or stated in the labor contract;
- Supports in the expenses for training of agricultural laborers, who have to do other jobs or occupations, which shall be provided at specific levels prescribed by the provincial People’s Committees to laborers or job-training organizations where laborers are trained;
- Support for each household that changes its place of residence within a province or centrally-run city at a level of between 1,000,000 dong and 3,000,000 dong, or between 3,000,000 dong and 5,000,000 dong in case of removal from one province or centrally-run city to another. The specific levels shall be prescribed by the People’s Committees of the provinces and centrally-run cities. Such removal allowance shall not be applicable to subjects currently enjoying the migration allowances for development of new economic zones;
- Payment of expenses for relocation of houses and structures that can be disassembled for removal, fixed assets and production means to new places, for production and/or business establishments which are subject to relocation;
- Payment of expenses for relocation of houses and structures that can be disassembled and other public property, to State agencies, socio-political organizations, public-service units and people’s armed force units, that have to move to new places. The expense levels shall be estimated and sent by the relocating units to the provincial/municipal Finance and Pricing Services, which shall later submit them to the presidents of provincial/municipal People’s Committees for approval;
- Supports in house rentals for households and individuals that have to leave their places of residence but not yet received new residential houses and have to temporarily rent houses pending the resettlement. The support levels shall be specified by the provincial/municipal People’s Committees in their compensation plans and must be publicly announced.
1.3. Pay expenses as compensation for damaged infrastructure in localities where land is recovered to local budgets. The level of compensation for damage caused to infrastructure projects shall be equal to the value of newly built projects with a technical standard equivalent to that of projects of localities where land is recovered. Special cases shall be decided by the Prime Minister or the presidents of the People’s Committees of the provinces and centrally-run cities.
Infrastructure works (roads, power stations, water supply and drainage pumping stations, electricity grids), which are situated in areas with land being given to projects but not subject to destruction and still serving the localities’ demands, shall not be eligible for compensation.
1.4. Provide support funds for construction of infrastructure in resettlement quarters according to provisions in Clause 3, Article 31 of the Government’s Decree No.22/1998/ND-CP of April 24, 1998. The specific support levels shall be decided by the provincial-level People’s Committees on the basis of agreement reached with organizations and individuals licensed to exploit and/or process minerals.
1.5. Give priority to the recruitment of laborers for their mineral activities from the population that have to change their places of residence under the impact of mineral exploiting and/or processing activities.
2. Organizations, households and individuals that are lawfully using land in localities where minerals resources are available but remain untapped and need to be protected, and that have to change their places of residence and/or production, shall be assigned or leased land by the State according to the provisions of the Government’s Decree No.04/2000/ND-CP of February 11, 2000 on the implementation of the Law Amending and Supplementing A Number of Articles of the Land Law, the above-said Decree No.22/1998/ND-CP and the relevant legal documents that amend, supplement and guide the implementation of these two decrees.
3. Production and/or business establishments that have to move to new places of production and/or business shall be considered newly-set up establishments and entitled to the following investment promotion preferences:
- Domestic production and/or business establishments shall enjoy investment preferences provided for in the Government’s Decree No.51/1999/ND-CP of July 8, 1999 detailing the implementation of the Law on Domestic Investment Promotion.
Within 10 days after stabilizing their production and/or business activities, the newly-relocated production and/or business establishments shall have to submit dossiers of registration for investment promotion preferences together with the competent authorities’ relocation decisions for execution of projects for mineral exploitation and/or processing or for protection of untapped mineral resources.
Within 20 days after the provincial/municipal Planning and Investment Services and the district People’s Committees receive complete and valid dossiers, the presidents of the provincial/municipal People’s Committees shall grant certificates of investment promotion preferences to the applicants as for newly-set up establishments, at the proposals of the provincial/municipal Planning and Investment Services or district People’s Committees. In cases where the concerned enterprises fall within the licensing competence of the Ministry of Planning and Investment, the latter shall, within 30 days after receiving complete and valid dossiers, grant certificates of investment promotion preferences to the former.
The dossier, procedures and order for registering for tax exemption or reduction preferences shall comply with the Finance Ministry’s guidance in Circular No.146/1999/TT-BTC of December 17, 1999 guiding the tax exemption and reduction according to provisions of the Government’s Decree No.51/1999/ND-CP of July 8, 1999.
- Foreign-invested enterprises shall enjoy investment preferences provided for at Point 3, Article 3 of the Government’s Decree No.22/1998/ND-CP of April 24, 1998.
4. In cases where they have to remove their places of residence to other provinces, the removing population shall, besides having their interests protected under the Prime Minister’s Decision No.219/1999/QD-TTg of November 11, 1999, enjoy preferential policies on sedentarization and population relocation for new economic zone development, provided that they fully meet the conditions therefor. Particularly, the duration for enjoying the life and production stabilization allowances mentioned at Point 1.2, Clause 1, Part II of this Circular shall be one year.
5. The presidents of the provincial-level People’s Committees shall base themselves on the actual situation of their respective localities to decide to:
- Provide pecuniary supports for households of persons who are beneficiaries of the State’s social allowances, that have to relocate their places of residence due to the land recovery. The minimum support level shall be 1,000,000 dong;
- Reward organizations, households and individuals that are land users, have their land recovered and have carried out the relocation strictly according to the plans of the Ground Clearance Compensation Council. The specific reward levels shall be stipulated by the presidents of the provincial-level People’s Committees.
6. The People’s Committees of the provinces and centrally-run cities shall directly organize the compensation and compensation payment according to guidance contents at Points 1.1, 1.2 and 1.3, Clause 1, Part II of this Circular to organizations, households and individuals defined in Clause 2, Part II of this Circular. The whole compensation funding shall be allocated from the provincial budgets. Organizations and individuals licensed to exploit and/or process minerals within the land area for which compensations and ground clearance have directly been made by the provincial People’s Committees shall have to refund such compensation money to the provincial-level budgets according to provisions at Point 8, Article 34 of the Government’s Decree No.22/1998/ND-CP of April 24, 1998.
7. Local administrations of all levels shall have to give priority to the recruitment of laborers from among the population that had been relocated for mineral exploitation and/or processing or protection of untapped mineral resource, to work under plans for economic development investment, life and production protection and stabilization and untapped mineral resource protection defined in Article 2 of the Prime Minister’s Decision No.219/1999/QD-TTg of November 11, 1999.
III. USE OF REVENUE SOURCES FROM MINERAL ACTIVITIES FOR PROTECTION OF LOCAL PEOPLE’S INTERESTS AND PROTECTION OF UNTAPPED MINERAL RESOURCES
1. Provincial budgets’ estimates of revenues from mineral activities shall be elaborated as follows:
1.1. Upon elaborating annual tax collection estimates, the tax departments of the provinces where mineral activities are conducted or where exist untapped mineral resources that need to be protected shall draft and send to the provincial Finance and Pricing Services the estimates of revenues from mineral activities conducted in their respective provinces, according to each kind of tax or fee as follows:
- Land and water surface rentals, to be paid by enterprises engaged in mineral exploitation and/or processing;
- Mineral activity licensing fee as prescribed in Clause 2, Article 9 of the Government’s Decree No.68/CP of November 1st, 1996;
- Fines against administrative violations in the field of mineral activities as prescribed in the Government’s Decree No.35/CP of April 23, 1997;
- Natural resources tax;
- Other revenues from mineral activities according to the provisions of law.
1.2. On the basis of tax collection estimates made by the tax departments and the guidance in the Finance Ministry’s Circular No.103/1998/TT-BTC of July 18, 1998 guiding the assignment, drafting, implementation and settlement of the State budget, the provincial/municipal Finance and Pricing Services shall have to elaborate estimates of revenues from mineral activities, which the provincial budgets are entitled to receive.
Regarding the elaboration of estimates of additional revenues from the central budget: In cases where a provincial budget has no revenue source from mineral activities (or its revenue sources are not enough to cover the spending tasks), but there exist within such province’s administrative boundary untapped mineral resources that need to be protected, the estimates of additional revenues from the central budget shall be elaborated as soon as the annual local budget estimates are elaborated on the basis of the approved mineral protection plans.
Revenues from mineral activities, which the provincial budgets are entitled to receive, shall exclude revenues from activities regarding petroleum and natural water of different kinds (other than mineral water and natural thermal water), natural resources tax on natural forest products, hydro-electric water, aquatic and marine products.
2. The use of revenue sources from mineral activities in order to realize the policy of protecting the interests of people in localities where minerals are exploited and/or processed and protecting untapped minerals shall be effected as follows:
2.1. Estimates of funding amounts according to plans for the protection of interests of people in localities where minerals are exploited and/or processed and for the protection of untapped mineral resources shall contain the following:
2.1.1. Estimates of expenditures on investment in socio-economic development of localities where minerals are exploited and/or processed, including:
- Expenses for investment in construction, upgrading or repair of infrastructure projects in residential quarters, such as: water supply and drainage system, local traffic roads, bridges and culverts, power supply networks and telephone networks;
- Expenses for investment in construction, upgrading or repair of localities’ educational, medical and social welfare projects, such as: schools, medical examination and treatment establishments, job-training centers;
- Expenses for investment in construction, upgrading or repair of economic-trade development projects, such as: markets, stations and storing yards, commune clusters’ centers, trade centers, irrigation works in service of agricultural and forestry production, etc.;
- Expenses for working out of localities’ planning and plans for development of mineral exploiting and processing industries as well as mineral use and trading, and planning of urban development in rural areas.
Estimates of socio-economic development investment expenditures shall be incorporated in the estimates of economic development investment expenditures of annual provincial budgets.
2.1.2. Estimates of expenditures on life and production protection and stabilization for organizations and population in localities, where minerals are exploited and/or processed, that have to change their places of residence or production, including:
- Priority investment in infrastructure in localities where such organizations and population are intended to move to. In addition to compensations for damaged infrastructure and supports for infrastructure construction paid or provided by organizations and individuals licensed to exploit and/or process minerals as defined in Article 31 of the Government’s Decree No.22/1998/ND-CP of April 24, 1998 and guidance at Points 1.3 and 1.4, Clause 1, Part II of this Circular, the investment in infrastructure in new places of residence shall also be funded by provincial budgets’ revenues from mineral activities according to contents of expenditures on investment in socio-economic development as guided at Item 2.1.1, Point 2.1, Clause 2, Part III of this Circular;
- Expenses for restoration and development of traditional crafts and trades in association with the policy on development of the mining industry and policy on general socio-economic development of the province, such as: expenses in support of local centers for traditional crafts training (for procurement of equipment and facilities, payment of remuneration to craftsmen invited for teaching,...), expenses for organizing competitions among local traditional craft articles;
- Expenses for preservation and promotion of fine customs and traditional practices of the population community that had to move to new places of residence;
- Expenses for job-training of agricultural laborers who had to switch to other jobs or occupations. The expense levels must be balanced against the job-training funding sources supported by organizations and individuals engaged in mineral exploitation and/or processing defined at Point 1.2, Clause 1, Part II of this Circular;
- Expenses for sedentation (virgin land reclamation and field building), supports for production (plant varieties and animal breeds).
Estimates of expenditures on the protection and stabilization of the life of population that had to change their places of residence shall be incorporated in estimates of expenses for financial supports to social organizations and socio-professional organizations as well as expenses for implementation of social policies, which are managed by the provinces.
2.1.3. Estimates of expenses for the protection of untapped mineral resources shall include contents concerning measures for and organization of untapped mineral resource protection, which have already been decided by the provincial People’s Committees.
Estimates of expenses for the approved optional plans for untapped mineral resource protection shall be incorporated in the provincial budgets’ estimates of expenditures on security and social order and safety.
2.2. The elaboration of estimates must be detailed according to the spending items of the system of the State budget contents, promulgated together with the Finance Ministry’s Decision No.280/TC/QD-NSNN of April 15, 1997, which was amended and supplemented by the Finance Ministry’s 156/1998/TT-BTC of December 12, 1998.
2.3. The order for estimating, disbursing and settling funds for the protection of interests of people in the localities, where minerals are exploited and/or processed, or for the protection of untapped mineral resource, besides complying with the guidance in the Finance Ministry’s Circular No.103/1998/TT-BTC of July 18, 1998 guiding the assignment, drafting, implementation and settlement of the State budget and guiding documents of the concerned ministries, branches and localities on norms, unit prices and contents of expense breakdowns, must satisfy the following requirements:
- The approved total annual estimates of funds for protection plans must be balanced against the provincial budgets’ annual estimates of revenues from mineral activities according to the guidance at Point 1.2, Clause 1, Part III of this Circular;
- Additional revenues from the central budget shall be used only for the approved plans for protection of untapped mineral resources.
- Revenues from land and water surface rentals paid by enterprises engaged in mineral exploitation and processing, and natural resources tax shall be used only for investment spending tasks, not for regular spending tasks.
3. Expenses for capital construction investment projects under the approved plans must go through the management order and procedures according to the State’s current regulations.
IV. ORGANIZATION OF IMPLEMENTATION
The implementation order and responsibilities of the branches and People’s Committees of all levels for organizing the payment of damage compensations and ground clearance for the relocation of organizations, households and individuals from localities where minerals are exploited and/or processed or for the protection of untapped mineral resources shall comply with provisions of the Government’s Decree No.22/1998/ND-CP of April 24, 1998.
This Circular takes effect as from the effective date of the Prime Minister’s Decision No.219/1999/QD-TTg of November 11, 1999. Any problems arising in the course of implementation should be promptly reported by the concerned ministries, branches and localities to the Finance Ministry for study and timely amendments and supplements.
| FOR THE MINISTER OF FINANCE VICE MINISTER Tran Van Ta |