No environmental protection tax collected for restricted herbicides

The Ministry of Finance has issued an official dispatch.9048/BTC-CSTguide the Tax Department and Customs Department of provinces and cities on how to calculate environmental protection tax (EPT) on herbicides and plastic bags.

The Ministry of Finance said that Resolution 1269/2011/NQ-UBTVQH12 of the National Assembly Standing Committee promulgating the Environmental Protection Tax Rate Schedule stipulates environmental protection tax on herbicides that are restricted in use. The production and trading of herbicides are carried out in accordance with the provisions of the Ordinance on Plant Protection and Quarantine.

Furthermore, Clause 3, Article 29 of the Ordinance on Plant Protection and Quarantine stipulates that the Ministry of Agriculture and Rural Development must publish a specific list of permitted pesticides, restricted pesticides, and prohibited pesticides in Vietnam every year. However, at present, the List of restricted pesticides does not include restricted herbicides. Therefore, environmental protection tax has not been collected on restricted herbicides.

Environmental protection tax on multi-layer plastic bags

Clause 3, Article 2 of Decree No. 67/2011/ND-CP of the Government detailing and guiding the implementation of a number of articles of the Law on Environmental Protection Tax states: “Taxable nylon bags (plastic bags) specified in Clause 4, Article 3 of the Law on Environmental Protection Tax are thin plastic bags and packaging made from single plastic films HDPE (high density polyethylene resin), LDPE (Low density polyethylene) or LLDPE (Linear low density polyethylene resin), except for pre-packaged goods and nylon bags that meet the criteria of being environmentally friendly according to regulations of the Ministry of Natural Resources and Environment”.

Multi-layer plastic bags are bags made from single plastic films HDPE, LDPE, LLDPE and other types of plastic films (Polypropylene - PP, Polyamide-PA, ...).

Multi-layer plastic bags produced from HDPE, LDPE, LLDPE single plastic films are subject to environmental protection tax. Environmental protection tax on multi-layer plastic bags is calculated based on the percentage of weight of HDPE, LDPE, LLDPE single plastic film in the bag. Based on the standard amount of HDPE, LDPE, LLDPE single plastic film used to produce multi-layer plastic bags, enterprises producing and importing multi-layer plastic bags declare and pay environmental protection tax.

The Ministry of Finance requires enterprises to develop and manage their own standards for the quantity of HDPE, LDPE, and LLDPE single-layer plastic films used to produce multi-layer plastic bags. Standards are established at the beginning of the year or the beginning of the plastic bag production period and notified to the direct tax authority before selling plastic bags. In case an enterprise adjusts or supplements the standards during the production period, the enterprise must notify the direct tax authority.

Previously, Deputy Prime Minister Vu Van Ninh hadDirectThe Ministry of Finance shall preside over and coordinate with relevant ministries and agencies to submit to the Government and the Prime Minister for settlement of problems related to environmental protection tax on plastic bags under the authority of the Government and the Prime Minister.

According to (Chinhphu.vn)-LT