Incentives for and assistance in environmental protection in Vietnam

Incentives for and assistance in environmental protection in Vietnam (Image from the Internet)

1. Incentives for and assistance in environmental protection in Vietnam

According to Article 141 of the Law on Environmental Protection 2020, the incentives for and assistance in environmental protection in Vietnam are as follows:

- The incentives for and assistance in environmental protection are stipulated as follows:

+ The State implements incentives and support regarding land, capital; exemption and reduction of taxes, fees for environmental protection activities; price subsidies, transportation cost subsidies for environmentally friendly products, and other incentives and support for environmental protection activities as prescribed by law;

+ Organizations and individuals carrying out multiple environmental protection activities are entitled to corresponding incentives and support for those activities;

+ In cases where environmental protection activities are eligible for incentives and support under the Law on Environmental Protection 2020 and other related legal regulations, the highest incentives and support prescribed by the applicable legal documents will apply;

+ The level and extent of incentives and support for environmental protection activities are adjusted to ensure compatibility with the environmental protection policies for each period.

- Investment and business activities in environmental protection eligible for incentives and support include:

+ Investment projects in the collection, treatment, recycling, or reuse of waste;

+ Enterprises producing, providing technology, equipment, products, and services meeting environmental protection requirements, including energy recovery technologies from waste treatment; energy-saving technologies; centralized domestic wastewater treatment services; ambient environmental monitoring services; public transportation services using electric energy, renewable fuels; production of clean energy, renewable energy; production and provision of environmental monitoring equipment, on-site domestic wastewater treatment equipment, environmentally friendly products, and services certified with the Vietnam Eco-label.

- Environmental protection activities that are not investment or business activities but still receive incentives and support include:

+ Activities to innovate technologies, renovate, and upgrade waste treatment works according to a schedule prescribed by environmental protection laws;

+ Activities relocating households out of centralized production, business, service areas, industrial clusters, or relocating operational facilities to meet safe environmental distances;

+ Investment activities to develop natural capital, protect natural heritage.

- Scientific research and technological development, technology transfer on environmental protection are entitled to incentives and support in accordance with laws on science, technology, and technology transfer.

2. Policies on environmental protection taxes and fees in Vietnam

According to Article 136 of the Law on Environmental Protection 2020, the oolicies on environmental protection taxes and fees in Vietnam are as follows:

- Environmental protection tax is stipulated as follows:

+ Environmental protection tax applies to products and goods that, when used, negatively impact the environment or pollute the environment;

+ The environmental protection tax rate is determined based on the level of environmental damage caused;

+ The promulgation and implementation of regulations on environmental protection tax are conducted according to tax laws.

- Environmental protection fee is stipulated as follows:

+ Environmental protection fee applies to waste discharge activities into the environment; mineral exploitation or activities that cause adverse environmental impacts; public services in the field of environmental protection as prescribed by the laws on fees and charges;

+ The level of environmental protection fee is determined based on the volume, toxicity of pollutants discharged into the environment, characteristics of the environment receiving the waste; the level of adverse impact on the environment due to mineral exploitation activities; nature of public services in the field of environmental protection;

+ The promulgation and implementation of regulations on environmental protection fees are conducted according to the laws on fees and charges.

- The Ministry of Natural Resources and Environment of Vietnam leads the assessment of the environmental pollution level, greenhouse effect of waste or products and goods that negatively impact the environment to propose a detailed list of subjects subject to environmental protection taxes and fees, the framework for tax and fee rates, and methods for calculating environmental protection fees, and submits to the Ministry of Finance for synthesis and reports to the competent authorities for consideration and decision.

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