Vietnam: What are the cases in which the payment of the fees for water resource exploitation right is required from July 1, 2024 under the Law on Water Resources 2023?
- What are the cases in which the payment of the fees for water resource exploitation right in Vietnam is required from July 1, 2024 under the Law on Water Resources 2023?
- What are the cases of exemption or reduction of the fee for water resource exploitation right in Vietnam under the Law on Water Resources 2023?
- What are the current bases for calculating the fee for water resource extraction right in Vietnam?
What are the cases in which the payment of the fees for water resource exploitation right in Vietnam is required from July 1, 2024 under the Law on Water Resources 2023?
Under the provisions of Clause 1, Article 69 of the Law on Water Resources 2023 on the payment of the fees for water resource exploitation right from July 1, 2024 as follows:
Any organization or individual exploiting water resources in the case where the surface water or groundwater exploitation has to be licensed must pay a fee for water resource exploitation right in the following circumstances:
- Exploit surface water to generate electricity for commercial purposes;
- Exploit surface water or groundwater to serve production, business, service provision and aquaculture or to be supplied for agricultural or domestic purposes.
Currently, based on the provisions in Article 3 of Decree 82/2017/ND-CP amended by Clause 1, Article 1 of Decree 41/2021/ND-CP, organizations and individuals licensed for extracting and using surface water, underground water (hereinafter referred to as “license holders”) must submit the fee for water resource extraction right if they fall under any of following cases:
(1) For extraction of surface water:
- Surface water extraction for electricity generation;
- Surface water extraction for business operations, services, non-agricultural production, coolant for machinery and equipment..
(2) For extraction of underground water:
- Underground water extraction for business operations, services, non-agricultural production, coolant for machinery and equipment.
- Underground water extraction (except for brackish water, and saltwater) for fishery, livestock husbandry, watering for coffee plants, cashew plants, tea plants, pepper, and other industrial plants with at least 20 m3/24 hours.
What are the cases of exemption or reduction of the fee for water resource exploitation right in Vietnam under the Law on Water Resources 2023?
Under the provisions of Clause 3, Article 69 of the Law on Water Resources 2023, an organization or individual exploiting surface water or groundwater as prescribed in Clause 1 of Article 69 of the Law on Water Resources 2023 shall be exempted from the fee for water resource exploitation right in the following circumstances:
- Water is exploited to serve domestic activities of the people in in border areas, on islands, in disadvantaged and extremely disadvantaged areas;
- A project includes a water exploitation structure item guaranteed by the Government of Vietnam under the Government guarantee;
- During the period a water exploitation structure is damaged due to force majeure, resulting in a failure to continue the exploitation or suspension of the exploitation.
Under the provisions of Clause 4, Article 69 of the Law on Water Resources 2023, the organization or individual exploiting surface water or groundwater prescribed in clause 1 of this Article shall receive a reduction in the fee for water resource exploitation right in the following circumstances:
- The competent authority requests them to reduce the amount of water exploited by the water exploitation structure as prescribed in point g clause 1 Article 42 of the Law on Water Resources 2023;
- Water is used circularly or reused as prescribed in clause 5 Article 59 of the Law on Water Resources 2023;
- The approved lowland flood control storage of the reservoir that has been put into operation has to be adjusted or increased;
- Water is exploited for agricultural production during periods of drought, water scarcity, or saltwater intrusion.
What are the current bases for calculating the fee for water resource extraction right in Vietnam?
Under the provisions of Article 4 of Decree 82/2017/ND-CP amended by Clause 2, Article 1 of Decree 41/2021/ND-CP, the current bases for calculating the fee for water resource extraction right in Vietnam include:
(1) Water use purposes include:
- Water extraction for hydroelectricity generation;
- Water extraction for business operations and services;
- Water extraction for non-agricultural production and coolant for machinery, and equipment;
- Underground water extraction for watering coffee plants, rubber plants, cashew plants, tea plants, pepper and other industrial plants;
- Underground water extraction for fishery and livestock husbandry.
(2) Water source quality is identified based on areas classified by water quality or by water source functions in water resource planning water resource-related planning as per planning laws or approved regional, provincial planning; in case planning is not available or classification within planning has not been implemented, rely on practical quality of water sources.
(3) Type of water for extraction includes: Surface water, underground water.
(4) Extraction conditions:
- For surface water, identify depending on where the surface water is extracted;
- For underground water, identify based on type of extracting structure (drilled wells, dug wells, corridors, caves), in case of drilled well, identify based on depth of extraction.
(5) Scale of operations:
- In case of water extraction for hydroelectricity generation, identify based on design dossiers;
- In case of water extraction for purposes other than those under Point a of this Clause, identify based on license for extracting, using water resources and percentage of water used for each purposes.
(6) Period of extraction is determined based on the commencement date, date on which the license comes into force and the period under license for extracting, using water resources.
The Law on Water Resources 2023 will take effect from July 1, 2024 except for Clauses 3 and 4, Article 85 of the Law on Water Resources 2023.
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