Decree No. 154/2016/ND-CP dated November 16, 2016 of the Government on environmental protection charge for wastewater

DECREE

On environmental protection charge for wastewater[1]

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

Pursuant to the November 25, 2015 Law on Charges and Fees;

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

At the proposal of the Minister of Finance;

The Government promulgates the Decree on environmental protection charge for wastewater.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes objects liable to environmental protection charge for wastewater, cases entitled to charge exemption, charge payers, charge rates, and charge declaration, payment, management and use.

Article 2.Charge-liable objects

1. Objects liable to environmental protection charge under this Decree are industrial wastewater and residential wastewater, except those exempt from the charge specified in Article 5 of this Decree.

2. Industrial wastewater means wastewater discharged from:

a/ Establishments producing or processing agricultural, forestry or aquatic products;

b/ Establishments producing or processing food, liquor, beer, beverages or cigarette;

c/ Large cattle and poultry raising and slaughtering establishments;

d/ Aquacultural establishments;

dd/ Cottage industry establishments in craft villages;

e/ Leather tanning and leather re-processing establishments;

g/ Mineral mining and processing establishments;

h/ Textile, dyeing and garment establishments;

i/ Establishments producing paper, pulp, plastic or rubber;

k/ Establishments producing fertilizers, chemicals, pharmaceuticals, pesticides, building materials, stationery or household appliances;

l/ Mechanical, metallurgy, metal processing, mechanical engineering establishments;

m/ Establishments producing electrical and electronic components and devices;

n/ Establishments preliminarily processing scraps, ship dismantlement establishments and ship cleaning establishments;

o/ Water plants;

p/ Centralized wastewater treatment systems of industrial parks;

q/ Other production establishments.

3. Residential wastewater means wastewater discharged from:

a/ Households;

b/ State agencies, non-business units, and people’s armed forces units (except production and processing establishments of people’s armed forces units);

c/ Executive offices, branches and offices of organizations and individuals which are separated from production and processing locations;

d/ Car and motorbike washing or repair establishments;

dd/ Hospitals; medical clinics; restaurants, hotels; training and research institutions; and other business and service establishments;

e/ Organizations, individuals and other subjects discharging wastewater not yet specified in Clause 2 of this Article.

Article 3.Charge-collecting agencies

Agencies collecting environmental protection charge for wastewater include:

1. Provincial-level Natural Resources and Environment Departments, which shall collect environmental protection charge for industrial wastewater. Based on charge collection requirements of each locality and management capacity of district-level natural resources and environment agencies, provincial-level Natural Resources and Environment Departments may propose provincial-level People’s Committees to authorize district-level Natural Resources and Environment Divisions to collect environmental protection charge for industrial wastewater in localities.

2. Water supply units, which shall collect environmental protection charge for residential wastewater discharged by water users.

3. Commune-level People’s Committees, which shall collect environmental protection charge for residential wastewater discharged by water users that exploit water by themselves.

Article 4.Charge payers

1. Organizations and individuals (including also heads of households) discharging wastewater specified in Article 2 of this Decree shall pay environmental protection charge for wastewater.

2. Organizations and individuals discharging wastewater into centralized wastewater treatment systems and having paid for the wastewater treatment service do not have to pay environmental protection charge for wastewater. Units managing and operating drainage systems shall pay environmental protection charge for wastewater received and discharged into the environment (except the case specified in Clause 8, Article 5 of this Decree).

3. Industrial production establishments, agricultural, forestry and aquatic product-producing or -processing establishments, and centralized wastewater treatment systems specified in Clause 2, Article 2 of this Decree that use water supplied by water supply units for their production or processing activities shall pay environmental protection charge for industrial wastewater (but not environmental protection charge for residential wastewater).

Article 5.Cases entitled to charge exemption

The following cases are exempt from environmental protection charge:

1. Water runoff from hydroelectric power plants, water circulating within production or processing establishments without being discharged into the environment in any forms (solid, liquid or gaseous);

2. Seawater discharged after being used for salt production;

3. Residential wastewater discharged by organizations, individuals and households in geographical areas eligible for price subsidy by the State in order to keep water prices suitable to socio-economic conditions;

4. Residential wastewater discharged by organizations, individuals and households in communes in rural areas and areas where no water supply system is available;

5. Equipment and machine cooling water not in direct contact with pollutants and discharged through separate drains;

6. Natural rainwater spill off (except those in chemical plants);

7. Water discharged from fishing vessels;

8. Residential water discharged into the environment after being treated up to standards and technical regulations by units managing and operating water drainage systems.

Chapter II

CHARGE RATES AND CHARGE COLLECTION, PAYMENT, MANAGEMENT AND USE

Article 6.Charge rates

1. For residential wastewater, the environmental protection charge rate is 10% of the selling price, exclusive of value-added tax, per m³(cubic meter) of clean water. Provincial-level People’s Councils may set a higher charge rate as suitable to their local realities. For organizations and households that exploit water for use by themselves (except for households specified in Clauses 3 and 4, Article 5 of this Decree), the charge rate for residential wastewater shall be set for each water user based on the average water use per person and the average selling price per m³of clean water in the commune, ward or township where the water is exploited.

2. The environmental protection charge rate for industrial wastewater shall be calculated as follows:

F = f + C, of which:

a/ F is the payable charge amount;

b/ f is the fixed charge rate of VND 1,500,000 per year;

c/ C is the variable charge rate, which shall be calculated based on the total volume of water discharged; content of pollutants and the rate applicable to each pollutant specified in the table below:

The variable charge rate shall not apply to production and processing establishments that discharge less than 20 m³of wastewater per day as prescribed in this Article.

Article 7.Determination of payable charge amounts

1. For residential wastewater

The environmental protection charge amount payable for residential wastewater shall be determined as follows:

In which:

a/ The volume of clean water used shall be determined based on the charge payer’s water meter readings.  In case no water meter has been installed, the water use norm set by provincial-level People’s Committees for the relevant category of water users shall be used.

For self-exploited water, the volume of clean water used shall be determined based on the number of family members stated in the household residence registration book (for households) or the timekeeping table, salary table or employment contracts (for non-production or -processing establishments) and the average clean water use per person in the commune, ward or township.

For business and service establishments that exploit water by themselves for use, the volume of clean water used shall be determined based on the scope of business and service activities as declared by the establishments and appraisal results of commune-level People’s Committees.

b/ The selling price of clean water is the selling price, exclusive of value-added tax, of clean water set by the water supply unit;

c/ The charge rate is specified in Clause 1, Article 6 of this Decree.

2. For industrial wastewater:

The payable charge amount for industrial wastewater shall be determined as follows:

a/ The fixed charge amount payable is VND 1,500,00 per year;

b/ The variable charge amount (C) specified in Clause 2, Article 6 of this Decree shall be calculated for each pollutant as follows:

- In case the average volume of wastewater discharged in a year is less than 20 m³/day, the fixed charge amount (f) to be paid is VND 1,500,000 per year;

- In case the average volume of wastewater discharged in a year is 20 m³/day, higher or the charge amount to be paid on a quarterly basis shall be calculated according to the following formula:

F_q= (f/4) + C_q

In which:

+ F_qis the charge amount payable on a quarterly basis (VND);

+ f = VND 1,5000,000;

+ C_qis the variable charge amount payable on a quarterly basis.

c/ Determination of the volume of wastewater discharged:

- For establishments with wastewater meters, the volume of wastewater discharged shall be determined based on meter readings;

- For establishments without wastewater meters, the volume of wastewater discharged shall be determined based on actual measurement results recorded by the state management agency in charge of environmental issues or as equaling 80% of the volume of water used or according to the information declared in their quarterly environmental impact assessment reports.

Article 8.Making and appraisal of declarations and payment of environmental protection charge

1. Environmental protection charge for residential wastewater:

a/ Charge payers shall pay environmental protection charge for wastewater to water supply units upon paying their monthly water bills;

b/ Commune-level People’s Committees shall determine and collect environmental protection charge from local organizations, individuals, households and business and service establishments that exploit water by themselves;

c/ A water supply unit or commune-level People’s Committee shall open a treasury account for collection of environmental protection charge for residential wastewater at the local state treasury and deposit the collected charge amount into such account on a daily or weekly basis, depending on the collected charge amount. Every month, by the 20^thof the subsequent month at the latest, the water supply unit or commune-level People’s Committee shall remit the collected charge amount on such account into the state budget according to regulations.

Every month, the water supply unit or commune-level People’s Committee shall calculate the collected amount of environmental protection charge for residential wastewater, fill in Form 1 provided in the Appendix to this Decree and send it to the local tax office.

The water supply unit or commune-level People’s Committee shall open an account book to separately monitor the collected amount of environmental protection charge for residential wastewater. The collected environmental protection charge for residential wastewater may not be accounted as turnover of the water supply unit.

d/ State treasuries shall account environmental protection charge amounts remitted by water supply units and commune-level People’s Committees into corresponding chapters, categories and clauses according to current regulations of the state budget index;

dd/ Annually, within 90 days from the first day of the subsequent year, water supply units and commune-level People’s Committees shall finalize the collection and remittance of environmental protection charge for residential wastewater with tax offices in accordance with current regulations.

2. Environmental protection charge for industrial wastewater

a/ Charge payers shall:

- Quarterly, declare payable charge amounts as prescribed at Point a, Clause 2, Article 7 of this Decree within the first 5 days of the first month of the subsequent quarter to the charge-collecting organization, using Form 2 in the Appendix to this Decree. They shall ensure the accuracy of their declarations and create conditions for the charge-collecting organization to appraise the declared charge amounts as well as to conduct periodical and unscheduled inspections of discharging sources.

- Fully and timely pay payable charge amounts into the account for collection of environmental protection charge for industrial wastewater at the state treasury according to the notices of payable charge amounts issued by the provincial-level Natural Resources and Environment Department within 10 days after receiving such notices.

Production or processing establishments with a daily average volume of wastewater in a year is less than 20 m³per day shall pay a fixed charge amount once for the whole year according to notices of the charge-collecting organization; the deadline for charge payment is March 31.

- Finalize annual payable charge amounts with the charge-collecting organization within 45 days from the first day of the subsequent year.

b/ Provincial-level Natural Resources and Environment Departments and district-level Natural Resources and Environment Divisions (if being decentralized) shall:

- Coordinate with related agencies in reviewing and adjusting the classification of subjects liable to pay a fixed charge and the variable charge and notify such to charge payers no later than March 10 every year.

- Appraise environmental protection charge declarations regarding figures declared by charge payers, measurement results of the state management agency in charge of environmental issues or results of the latest inspection or examination which should be conducted within 12 months from the time of charge declaration and payment.

- By the last day of the first month of the subsequent quarter, issue notices of environmental protection charge amounts for industrial wastewater to be paid into the state budget, according to Form 3 in the Appendix to this Decree.

- Open an account book to separately monitor environmental protection charge amounts collected in their localities, and monitor, manage and use the charge amounts specified in Clause 2, Article 8 of this Decree.

- Quarterly, by the last day of the second month of the subsequent quarter, charge-collecting organizations shall sum up the collected environmental protection charge amounts for reporting to tax offices and periodical comparison with figures kept at the state treasuries with which they conduct transactions.

- Annually, within 90 days from the first day of the subsequent year, charge-collecting organizations shall finalize the collection and remittance of environmental protection charge in the previous year with tax offices under regulations.

- Open an account for collection of environmental protection charge for industrial wastewater at the local state treasury.

- Periodically (by the 15^thof the second month of the subsequent quarter), charge-collecting organizations shall collaborate with the state treasury where they open accounts to remit 75% of the collected charge amounts into the state budget.

c/ For production and service establishments directly managed by the Ministry of Public Security or Ministry of National Defense, for the reason of national security or secrets, the appraisal of environmental protection charge declarations may be conducted by the Ministry of Public Security or Ministry of National Defense and notified to provincial-level Natural Resources and Environment Departments of the localities where the establishment operate according to form No. 4 in the Appendix to this Decree.

Article 9.Charge management and use

1. For residential wastewater:

a/ Water supply units may retain 10% and commune-level People’s Committees may retain 25% of the total collected amount of environmental protection charge to cover charge collection expenses. In case charge collection expenses are lower than the retained charge amount, provincial-level People’s Councils may decide to apply an appropriate retention rate, which, however, must not exceed 10%, for water supply units, or 25%, for commune-level People’ Committees;

b/ Water supply units and commune-level People’s Committees shall remit the remainder left after subtracting the to-be-retained amounts into local budgets for use in accordance with Clause 3 of this Article.

2. For industrial wastewater:

a/ Charge-collecting organizations may retain 25% of the total collected charge amount to cover charge collection expenses (for survey, making of statistics, classification, updating and management of charge-liable objects); expenses for measurement, evaluation, taking and analyzing wastewater samples to serve the appraisal of charge declarations, and for charge management; and expenses for periodical and unscheduled inspections of industrial wastewater;

b/ The remainder (75%) of the total collected amount of environmental protection charge for industrial wastewater) shall be remitted into local budgets for use as prescribed in Clause 3 of this Article.

3. Charge-collecting units shall remit the remainder after deducting the to-be-retained amount under Clause 1 or 2 of this Article to local budgets for use for environmental protection work and additional allocation of working capital for local environmental protection funds for the prevention, restriction and control of pollution caused by wastewater; and application of technological and technical solutions and plans to treat wastewater.

4. Annually, agencies collecting environmental protection charge for wastewater shall make public charge amounts paid in the previous year in the mass media such as local newspapers and radios, websites of such charge-collecting agencies, and in other appropriate forms.

Article 10.Responsibilities and obligations of local agencies

1. Provincial-level People’s Committees shall propose their People’s Councils to allocate funds from the source of environmental protection charge for wastewater for use for environmental protection work as prescribed in Clause 3, Article 9 of this Decree.

2. Provincial-level Natural Resources and Environment Departments and district-level Natural Resources and Environment Divisions shall:

a/ Coordinate with related agencies in classifying objects liable to pay fixed charge and variable charge as prescribed in Clause 2, Article 6 of this Decree.

b/ Appraise declarations of environmental protection charge for industrial wastewater, issue notices of payable charge amounts; and finalize the amounts of environmental protection charge for industrial wastewater;

c/ Sum up figures on environmental protection charge for wastewater in their localities for reporting to superior level management agencies according to regulations;

d/ Propose amendments to regulations on the rates and management and use of environmental protection charge for wastewater.

3. Tax offices shall inspect, urge and finalize the collection and remittance, of environmental protection charge for wastewater by water supply units and local natural resources and environment agencies.

4. Provincial-level Finance Departments shall coordinate with provincial-level Natural Resources and Environment Departments and Tax Departments in advising provincial-level People’s Committees on retention rates of environmental protection charge for residential wastewater as prescribed in Clause 1, Article 9 of this Decree for submission to provincial-level People’s Councils.

5. Local water supply units shall:

a/ Coordinate with provincial-level Natural Resources and Environment Departments and related units during the charge collection.

b/ Sum up figures on environmental protection charge for residential wastewater in their localities and report them to provincial-level Natural Resources and Environment Departments.

Chapter III

IMPLEMENTATION PROVISIONS

Article 11.Effect

1. This Decree takes effect on January 1, 2017, and replaces the Government’s Decree No. 25/2013/ND-CP of March 29, 2013, on environmental protection charge for wastewater.

2. Localities that have collected water discharge service charges under the Government’s Decree No. 80/2014/ND-CP of August 6, 2014, on water discharge and treatment of wastewater, may not collect environmental protection charge for wastewater under this Decree.

Article 12.Organization of implementation

1. The Ministry of Natural Resources and Environment shall:

a/ Issue detailed regulations on circulating water and natural rainwater spill off referred to in Clauses 1 and 6, Article 5 of this Decree;

b/ Issue regulations on the evaluation and taking of samples for analyzing industrial wastewater to serve the determination of payable charge amounts under this Decree.

2. Provincial-level People’s Committees shall propose their People’s Councils to set specific retention rates according to their competence prescribed in Clause 1, Article 9 of this Decree.

3. Ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendix to this Decree is not translated.