Maximum Price for Public Utility Hydraulic Products and Services

Circular applicable to enterprises in all economic sectors, registered water-cooperative organizations according to the law, organizations, and individuals registered in legal operations related to the management and exploitation of irrigation works (hereinafter referred to as irrigation units), and agencies and organizations related to the management and exploitation of irrigation works.

Regarding the maximum price list for public utility irrigation products and services for rice land, the Circular clearly states that for the entire mountainous region: The maximum price for motorized irrigation is 1,811 VND/ha/crop, gravity irrigation is 1,267 VND/ha/crop, and combined gravity and motorized support irrigation is 1,539 VND/ha/crop.

For the Red River Delta: The maximum price for motorized irrigation is 1,646 VND/ha/crop, gravity irrigation is 1,152 VND/ha/crop, and combined gravity and motorized support irrigation is 1,399 VND/ha/crop...

The Circular also stipulates that in cases where partial active irrigation and drainage are used, the maximum price is 60% of the prices listed above. In cases where only source creation for gravity irrigation and drainage is used, the maximum price is 40% of the prices listed above; in cases where only source creation for motorized irrigation and drainage is used, the maximum price is 50% of the prices listed above.

Based on the maximum prices stipulated in the Circular, the Ministry of Agriculture and Rural Development shall set specific prices for public utility irrigation products and services managed by the central government. The provincial People’s Committees and centrally-run cities shall set specific prices for public utility irrigation products and services managed by the local government to serve as a basis for bidding, ordering, and assigning plans for the management and exploitation of irrigation works according to regulations.

Based on the maximum prices set by the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the provincial People’s Committees and centrally-run cities shall set specific prices, but these prices must not exceed the maximum prices for public utility irrigation products and services set by the Ministry of Finance in this Circular.

Units supplying public utility irrigation products and services must list prices and publicly disclose price information in accordance with the legal provisions on prices.

Circular 280/2016/TT-BTC takes effect from January 1, 2017

Source: Vietnam Financial Times Online

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