Latest Policies on environmental protection taxes and fees in Vietnam

Latest Policies on environmental protection taxes and fees in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Latest Policies on environmental protection taxes and fees in Vietnam 

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

- Regarding environmental protection taxes:

+ Environmental protection taxes shall be imposed on products and goods of which the use adversely impacts the environment or substances that cause environmental pollution;

+ Environmental protection tax rates shall be determined according to the levels of adverse impacts on the environment;

+ The promulgation and implementation of regulations on environmental protection taxes shall comply with regulations of law on taxation.

- Regarding environmental protection fees:

+ Environmental protection fees on discharge of waste into the environment; mineral mining or creation of adverse impacts on the environment; public services in the field of environmental protection in accordance with regulations of law on fees and charges;

+ Environmental protection fees shall be determined according to the amount and toxicity of pollutants released into the environment, characteristics of the waste receiving environment; levels of adverse impacts of mineral mining activities on the environment; nature of public services in the field of environmental protection;

+ The promulgation and implementation of regulations on environmental protection fees shall comply with regulations of law on fees and charges.

- The Ministry of Natural Resources and Environment shall preside over assessing the level of environmental pollution and greenhouse effect caused by waste or products or goods of which the use adversely impacts the environment to propose a list of objects subject to environmental protection taxes and fees, bracket and rates of taxes and fees on each object subject to environmental protection taxes and fees and methods for calculating environmental taxes and shall send them to the Ministry of Finance, which will request a competent authority for consideration and decision.

2. Regulations on payment of deposits on environmental protection in Vietnam 

Regulations on payment of deposits on environmental protection in Vietnam according to Article 137 of the Law on Environmental Protection 2020 are as follows:

- The payment of deposits on environmental protection aims to ensure that entities take responsibility for remediating environment and manage risks of environmental pollution caused by the activities specified in Clause 2 of Article 137 of the Law on Environmental Protection 2020 .

- Entities that carry out the activities below must pay deposits on environmental protection:

+ Mineral mining;

+ Waste burial;

+ Import of scrap from foreign countries as production materials.

- The payment of deposits on environmental protection shall be made in cash, precious metals, precious stones or financial instruments as prescribed by law.

- The payment of deposits on environmental protection shall be made as follows:

+ Entities that carry out the activities in Points a and b Clause 2 of Article 137 of the Law on Environmental Protection 2020  shall pay deposits to the Vietnam Environment Protection Fund or provincial environment protection fund;

+ Entities that carry out the activity in Point c Clause 2 of Article 137 of the Law on Environmental Protection 2020  shall pay deposits to the Vietnam Environment Protection Fund or provincial environment protection fund or financial institution or credit institution as prescribed by law.

- The Government shall elaborate Article 137 of the Law on Environmental Protection 2020 , deposits, deposit payment methods, principles of deposit interest rates and return of deposits on environmental protection.

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