Is there an exemption from the environmental protection fee for extracting minerals as common building materials in Vietnam?

Is there an exemption from the environmental protection fee for extracting minerals as common building materials in Vietnam?

According to Article 5 of Decree 27/2023/ND-CP, cases eligible for environmental protection fee exemption are specified as follows:

Cases Eligible for Fee Exemption

1. The extraction of minerals for common building materials within the land area under the land use rights of households and individuals for constructing works of households and individuals within that area.

2. The extraction of soil and rock for leveling, constructing security and military works, natural disaster prevention, and mitigation. If extracted soil and rock are used both for leveling, constructing security and military works, natural disaster prevention and mitigation, and for other purposes, organizations and individuals are responsible for determining the volume of soil and rock eligible for fee exemption; the volume of soil and rock used for other purposes must be subject to environmental protection fees for mineral extraction.

3. Using stripped soil and waste rock during the extraction process to restore, rehabilitate the environment at the extraction site according to an environmental restoration plan approved by a competent authority.

The determination of the volume of stripped soil and waste rock eligible for the environmental protection fee exemption is based on:

a) The acceptance record of the volume for each technological stage of extraction, including: preparing soil and rock, blasting, transport, waste disposal as stipulated in point b, clause 2, Article 41 of Decree No. 158/2016/ND-CP dated November 29, 2016, of the Government of Vietnam detailing the implementation of certain provisions of the Mineral Law.

b) An environmental restoration plan approved by a competent state authority as stipulated in clause 3, Article 67 of the Law on Environmental Protection.

c) The mine closure dossier approved by a competent state authority in accordance with the mineral law.

Thus, extracting minerals as common building materials may be exempt from the environmental protection fee if the extraction activities occur within the land area under the land use rights of households and individuals for constructing works of households and individuals within that area.

Is there an exemption from the environmental protection fee for extracting minerals as common building materials in Vietnam? (Image from Internet)

Do foreign enterprises extracting natural gas have to pay environmental protection fees for mineral extraction in Vietnam?

According to Article 2 of Decree 27/2023/ND-CP, the subjects liable to environmental protection fees for mineral extraction are specified as follows:

Subjects Liable for Fees

Subjects liable to environmental protection fees for mineral extraction include activities of crude oil, natural gas, coal gas extraction; metal ores and non-metal ores as specified in the fee rate frame attached to this Decree.

At the same time, according to Article 4 of Decree 27/2023/ND-CP, those who are responsible for paying environmental protection fees for mineral extraction are specified as follows:

Fee Payers

Those responsible for paying environmental protection fees for mineral extraction under this Decree include:

1. Organizations and individuals extracting minerals as per the mineral law.

2. Vietnamese or foreign organizations and individuals permitted to extract crude oil, natural gas, coal gas based on petroleum contracts or performing petroleum services as per petroleum law.

3. Organizations and individuals permitted to extract small-scale minerals sold to organizations or individuals acting as purchasing focal points, and the purchasing focal points have a written consent to declare and pay fees on behalf of the extracting organizations or individuals, then the purchasing focal points are the fee payers.

Thus, the extraction of natural gas is subject to environmental protection fees for minerals. Therefore, foreign enterprises permitted to extract natural gas based on petroleum contracts or perform petroleum services as per petroleum law are obliged to pay environmental protection fees for minerals.

What are regulations on environmental protection fee rates for mineral extraction in Vietnam?

According to Article 6 of Decree 27/2023/ND-CP, the fee rates for environmental protection are specified as follows:

- The environmental protection fee rate for crude oil: 100,000 VND/ton; for natural gas, coal gas: 50 VND/m3. Meanwhile, associated gas collected during crude oil extraction: 35 VND/m3.

- The environmental protection fee rate for mineral extraction (including cases where the production and business activities of organizations and individuals are not intended for mineral extraction but acquire minerals) according to the fee rate frame attached to this Decree.

- The environmental protection fee rate for recovery extraction as stipulated by the mineral law is 60% of the fee rate of the corresponding mineral specified in the fee rate frame attached to this Decree.

Additionally, based on the principles for determining fee rates stipulated in the Law on Fees and Charges 2015, the fee rate frame attached to Decree 27/2023/ND-CP, and referring to the fee rates of localities with similar mineral extraction activities, the People’s Councils of provinces and centrally-run cities (hereinafter collectively referred to as the provincial People's Councils) decide on specific fee rates, units of environmental protection fees for each type of mineral applicable in the locality, suitable to the actual situation in each period.