The collection of environmental protection fees for mineral exploitation is implemented in order to contribute to raising the awareness and responsibility for environmental protection of organizations and individuals exploiting minerals; encourage investment in technology development, efficient and economical exploitation of minerals associated with environmental protection. Most recently, the Government issued Decree No. 27/2023/ND-CP (“Decree 27”) dated May 31, 2023, stipulating environmental protection fees for mining, replacing Decree 164/ 2016/ND-CP dated 24/12/2016 ("Decree 164") Compared to Decree 164, Decree 27 has some notable contents as follows:
1. Clarification of environmental protection fees payer
Decree 27 stipulates that payers of environmental protection fees (“environmental protection”) for mineral extraction include:
a. Organizations and individuals exploiting minerals in accordance with the law on minerals.
b. Vietnamese or foreign organizations and individuals who are allowed to exploit crude oil, natural gas, and coal gas on the basis of petroleum contracts or to provide petroleum services in accordance with the petroleum law.
c. Organizations and individuals that are allowed to exploit minerals on a small scale for sale to organizations or individuals acting as the focal point of purchase and sale; and if organizations and individuals acting as focal points for purchasing, undertake to approve in writing the declaration and payment of mineral fees on behalf of organizations or individuals exploiting, the organizations and individuals acting as the focal point for purchasing shall be the fee payers.
2. List of cases exempt from paying environmental protection fees
a. Activities of mining minerals as common building materials in the land area under the land use right of households and individuals to build works of households and individuals in that area.
b. Activities of exploiting soil and stone for leveling, construction of security and military works, natural disaster prevention and control, and disaster recovery. If there is a part used for other purposes, the volume of free soil and rock must be determined; the rest must pay environmental protection fee.
c. Using stripped soil and rock waste from the mining process to improve and restore the environment in the mining area according to the environmental improvement and restoration plan approved by the competent authority.
3. Adjustment of environmental protection fees for some types of assets being construction materials
In addition to keeping the environmental protection fee rates unchanged for crude oil, natural gas, and coal gas, the Decree promulgates the Framework Table of Environmental Protection Fees for other minerals in the direction of adjustment (mostly increasing for some types of minerals as building materials such as:
|
No. |
Type of mineral |
Fees according to Decree 164 (VND) |
Fees according to Decree 27 (VND) |
Detail |
|
1 |
Pebbles |
4.000 – 6.000 |
6.000 – 9.000 |
The maximum increase of 3,000 VND/m3 |
|
2 |
Stone for building materials |
1.000 – 5.000 |
1.500 – 7.500 |
The maximum increase of 2.500 VND/m3 |
|
3 |
Limestone, cement |
1.000 – 3.000 |
1.500 – 6.750 |
The maximum increase of 3.750 VND/m3 |
|
4 |
White marble for carbonate powder |
Charged with the common paving stone at the fee: 50,000 - 70,000 VND |
1.500 – 7.500 |
|
|
5 |
Golden sand |
3.000 – 5.000 |
4.500 – 7.500 |
The maximum increase of 2.500 VND/m3 |
|
6 |
White sand |
5.000 – 7.000 |
7.500 – 10.500 |
The maximum increase of 3.500 VND/m3 |
|
7 |
Clay |
1.500 – 2.000 |
2.250 – 3.000 |
The maximum increase of 1.000 VND/m3 |
|
8 |
Kaolin |
5.000 – 7.000 |
4.200 – 5.800 |
Decrease 800 – 1.200 VND/m3 |
On the basis of this fee framework, the People's Councils of the provinces and centrally-run cities will decide specifically the rates and units to calculate the environmental protection fee for each type of mineral to be applied locally in accordance with the regulations of the law for the actual situation in each period.
Decree No. 27 takes effect from July 15, 2023.
Comment: