Decree No. 12/2016/ND-CP dated February 19, 2016 of the Government on environmental protection charge on mineral exploitation

DECREE

On environmental protection charge on mineral exploitation[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 23, 2014 Law on Environmental Protection;

Pursuant to the November 17, 2010 Mineral Law;

Pursuant to the August 28, 2001 Ordinance on Charges and Fees;

At the proposal of the Minister of Finance,

The Government promulgates the Decree on environmental protection charge on mineral exploitation.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation and charge-liable objects

1. This Decree provides objects liable to environmental protection charge on mineral exploitation, charge payers, charge rates, charge calculation method and charge management and use.

2. Liable to environmental protection charge on mineral exploitation under this Decree are crude oil, natural gas, coal gas, metal minerals and non-metal minerals.

Article 2.Subjects of application

This Decree applies to organizations and individuals engaged in mineral exploitation, state agencies and organizations and individuals involved in management and collection of environmental protection charge on mineral exploitation.

Chapter II

LIST OF ENVIRONMENTAL PROTECTION CHARGE ON MINERAL EXPLOITATION AND CHARGE RATES, CHARGE CALCULATION METHOD AND CHARGE MANAGEMENT AND USE

Article 3.Charge rates

1. The rate of environmental protection charge on mineral exploitation is VND 100,000/ton, for crude, VND 50/m³, for natural gas and coal gas, and VND 35/m³, for natural gas obtained in the process of crude oil exploitation (associated gas).

2. The brackets of environmental protection charge on exploitation of other minerals are provided in the charge schedule promulgated together with this Decree.

3. The rate of environmental protection charge on full extraction of a type of mineral is equal to 60% of that for exploitation of such type of mineral specified in the charge schedule promulgated together with this Decree.

4. Based on the charge brackets specified in the charge schedule promulgated together with this Decree, People’s Councils of provinces and centrally run cities (below collectively referred to as provincial-level People’s Councils) shall decide on specific charge rates for each type of mineral suitable to local realities in each period.

Article 4.Charge calculation method

1. The payable amount of environmental protection charge on mineral exploitation in a charge payment period shall be calculated according to the following formula:

F = [(Q1 x f1) + (Q2 x f2)] x K

In which:

- F: the payable environmental protection charge amount in the period;

- Q1: the volume of earth and stone excavated and discharged in the period (m³);

- Q2: the volume of crude ores exploited in the period (ton or m³);

- f1: the charge rate applicable to earth and stone excavated and discharged which is VND 200/m³;

- f2: the charge rate applicable to of the exploited mineral (VND/ton or VND/m³);

- K: the charge calculation coefficient according to the method of exploitation, which is:

+ 1.05, for open-cast mining (including also hydraulic mining such as mining of titan, sand or gravel from riverbeds);

+ 1, for underground mining and other methods of exploitation (exploitation of crude oil, natural gas, natural mineral water and other cases).

2. The volume of earth and stone excavated and discharged in the process of coal mining is not subject to charge collection through the end of 2017.

3. The volume of earth and stone excavated and discharged in a charge payment period shall be determined based on documents of mining projects, environmental impact assessment reports and volume of earth and stone actually excavated and discharged.

The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Natural Resources and Environment in, guiding the determination of the volume of excavated and discharged earth and stone (Q1) prescribed in Clause 1 of this Article.

4. The volume of minerals exploited in a charge payment period used to determine the payable environmental protection charge amount is the volume of crude minerals actually exploited in the period (Q2). In case  exploited minerals are screened, sorted, classified or enriched before being sold or in other cases which require conversion of the volume of finished products into the volume of actually exploited minerals, based on local conditions for mineral exploitation and currently applied mineral processing technologies, provincial-level Natural Resources and Environmental Departments shall work with provincial-level Tax Departments so as to submit to provincial-level People’s Committees the rate for conversion from finished products into crude minerals to serve as a basis for calculation of environmental protection charge for each type of minerals to suit local realities.

Article 5.Management and use of environmental protection charge on mineral exploitation

1. Environmental protection charge on exploitation of minerals, excluding crude oil, natural gas and coal gas, constitutes a revenue which shall be wholly remitted to local budgets and used to support the following environmental protection activities in localities where minerals are exploited in accordance with the Law on Environmental Protection and the Law on State Budget:

a/ Preventing and mitigating negative environmental impacts;

b/ Remedying environmental degradation or pollution caused by mineral exploitation;

c/ Ensuring environmental hygiene, protecting and restoring environmental landscape.

2. Environmental protection charge on crude oil, coal gas and natural gas exploitation constitute a revenue which will be wholly remitted to the central budget and used to support environmental protection activities in accordance with the Law on Environmental Protection and Law on the State Budget.

3. Provincial-level People’s Committees shall submit plans on allocation and use of collected environmental protection charge amounts for environmental protection activities in their localities to People’s Councils at the same level.

4. Annually, charge-collecting agencies shall make public the charge amount paid by each enterprise.

Chapter III

IMPLEMENTATION PROVISIONS

Article 6.Effect

1. This Decree takes effect on May 1, 2016, and replaces the Government’s Decree No. 74/2011/ND-CP of May 28, 2011, on environmental protection charge on mineral exploitation.

2. After this Decree takes effect, pending the promulgation of new charge rates by provincial-level People’s Councils according to the charge schedule provided in the Appendix to this Decree, the current charge rates will be further applied. Particularly, for aluminum ore, bauxite ore, feldspar, serecite and graphite, pending the promulgation of new charge rates by  provincial-level People’s Councils, the maximum charge rates prescribed in the charge schedule provided in the Appendix to this Decree will be applied.

Article 7.Organization of implementation

1. The Ministry of Finance shall guide the collection, payment, management and use of environmental protection charge on mineral exploitation under this Decree and direct tax agencies to coordinate with local natural resources and environmental agencies in managing charge collection according to this Decree and the law on tax administration.

2. Provincial-level People’s Committees shall direct local natural resources and environmental agencies to, within their functions, tasks and powers, provide information and documents on organizations and individuals licensed to exploit minerals in their localities to tax agencies and coordinate with tax agencies in strictly managing charge payers specified in this Decree.

3. By no later than July 31, 2016, provincial-level People’s Councils shall promulgate resolutions on environmental protection charge on mineral exploitation for application in their localities according to Clause 4, Article 3 of this Decree.

Article 8.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of governmental-attached agencies, and chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG

Appendix

SCHEDULE OF RATES OF ENVIRONMENTAL PROTECTION CHARGE ON MINERAL EXPLOITATION

(To the Government’s Decree No. 12/2016/ND-CP of February 19, 2016)

THE END