Implementation of tax, fee and charge obligations in mineral activities

(Baonghean) - In the past, units and enterprises operating in mineral exploitation and using industrial explosives in the province have not seriously fulfilled their obligations to the State budget according to the provisions of law, especially taxes, fees, charges, land rents, and environmental restoration deposits. In order to promptly rectify and overcome the above-mentioned shortcomings, on May 28, 2014, the People's Committee of Nghe An province issued Official Dispatch No. 3558 on rectifying the implementation of tax, fee, and charge obligations in mineral activities and licensing the use of industrial explosives, requesting:

1. Provincial departments, branches and sectorsand the People's Committees of districts, cities and towns continue to seriously implement Decision No. 58/2013/QD-UBND dated October 25, 2013 of the Provincial People's Committee on promulgating the Regulation on coordination in State management of mineral resources in Nghe An province.

2. Department of Natural Resources and Environment:

a) When advising the Provincial People's Committee and the Ministry of Natural Resources and Environment to re-issue mineral operation licenses, extend mineral exploitation licenses, supplement planning for areas with scattered and small-scale minerals..., in addition to the prescribed procedures, units and enterprises must attach documents (notarized copies) from competent authorities proving that they have completed land lease procedures, environmental restoration deposits and paid full land rent, taxes, fees and charges as prescribed.

b) For units and enterprises that are newly granted mineral exploitation licenses by the Ministry of Natural Resources and Environment and the Provincial People's Committee, the Department of Natural Resources and Environment shall be responsible for notifying in writing the units, enterprises and relevant local authorities of the obligations that the units and enterprises must fulfill (with a deadline for completion). After the prescribed deadline, the Department of Natural Resources and Environment shall preside over and coordinate with relevant departments, branches and district-level People's Committees to organize inspections and notify in writing the units, enterprises and local authorities and report to the Provincial People's Committee on the performance of obligations as prescribed (clearly stating whether the unit or enterprise has fulfilled or not fulfilled its obligations). If it has fulfilled its obligations as prescribed, it shall be allowed to operate. If it has not, it shall request additional information until the inspection is completed before allowing operation.

3. Department of Industry and Trade:

a) When consulting the Provincial People's Committee to issue new or re-issue licenses for the use of industrial explosives, in addition to the procedures prescribed in Decision No. 65/2011/QD-UBND dated December 8, 2011 of the Provincial People's Committee on promulgating regulations on management, trading, supply and use of industrial explosives in Nghe An province, units and enterprises must fulfill the following obligations:

- In cases of new issuance of licenses to use industrial explosives, units and enterprises must fulfill their obligations to lease land and deposit environmental restoration funds.

In cases of re-issuance of licenses to use industrial explosives for mineral exploitation, units and enterprises must have records showing completion of land lease, environmental restoration deposit and full payment of land rent, tax obligations, fees and charges as prescribed (notarized copies).

- In the case of construction works using industrial explosives, in addition to fulfilling obligations according to regulations, units and enterprises must have documents (notarized copies) showing that they have completed tax, fee and charge obligations (in some key projects, it is necessary to speed up the construction progress as decided by the Provincial People's Committee).

b) Preside over and coordinate with the Department of Justice and relevant departments and agencies to advise the Provincial People's Committee to supplement and amend Decision No. 65/2011/QD-UBND dated December 8, 2011 of the Provincial People's Committee on promulgating regulations on management of business, supply and use of industrial explosives in Nghe An province before June 25, 2014.

4. Nghe An Tax Department:

a) Have written instructions for local authorities and relevant agencies on their responsibilities towards units and enterprises in fulfilling State obligations on land rent, taxes, fees, and charges in mineral exploitation and construction activities before June 15, 2014.

b) Preside over and coordinate with relevant departments, branches and People's Committees of districts, cities and towns to regularly inspect and urge units and enterprises to fully pay land rent, taxes, fees and charges in mineral activities and construction works; take appropriate measures for units and enterprises to properly fulfill their obligations to the State budget in accordance with the law.

c) Regularly issue written notices and publicize on the media the status of land rent, tax, fee and charge payments of units and enterprises; when detecting units and enterprises violating obligations on land rent, tax, fee and charge, they must promptly report to the Provincial People's Committee and coordinate with competent authorities to strictly handle according to law provisions.

5. People's Committees of districts, cities and towns:

a) Strictly implement State management of mineral exploitation and construction activities in the area; promptly handle or advise the Provincial People's Committee and relevant agencies to handle cases of violations of obligations regarding land rent, taxes, fees and charges according to regulations.

b) For units and enterprises newly granted mineral exploitation licenses by the Ministry of Natural Resources and Environment and the Provincial People's Committee, the District People's Committee is responsible for coordinating with relevant agencies to organize inspections, urge and supervise the implementation of obligations regarding land rent and environmental restoration deposits before operation.

c) Only propose to the Provincial People's Committee and competent authorities to advise on re-issuing mineral operation licenses when units and enterprises have fully fulfilled their obligations regarding land rent, environmental restoration deposits, taxes, fees, and charges as prescribed (notarized copies attached).

Requesting directors of departments, heads of relevant sectors and chairmen of People's Committees of districts, cities and towns to seriously implement the above contents. In case of violations, heads of agencies and local authorities must be responsible before the Chairman of the Provincial People's Committee and before the law./.

Provincial People's Committee