Fulfillment of tax, fee, and levy obligations in mining activities.

(Baonghean) - In recent times, units and businesses operating in mineral exploitation and using industrial explosives in the province have not seriously fulfilled their obligations to the State budget as prescribed by law, especially taxes, fees, charges, land rent, and environmental restoration deposits. To promptly rectify and overcome the above-mentioned shortcomings, on May 28, 2014, the People's Committee of Nghe An province issued Official Letter No. 3558 on rectifying the implementation of tax, fee, and charge obligations in mineral exploitation activities and licensing the use of industrial explosives, requiring:

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

2. Department of Natural Resources and Environment:

a) When advising the Provincial People's Committee or the Ministry of Natural Resources and Environment on the re-issuance of mineral exploitation licenses, the extension of mineral exploitation licenses, or the supplementation of planning for areas with scattered and small-scale mineral deposits, in addition to the prescribed procedures, units and enterprises must include a document (notarized copy) from the competent authority proving that they have completed the land lease procedures, deposited funds for environmental restoration, and paid all land lease fees, taxes, and charges as prescribed.

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 Department of Natural Resources and Environment is responsible for notifying the units, enterprises, and relevant local authorities in writing about 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, in coordination with relevant departments, agencies, and district-level People's Committees, will organize inspections and notify the units, enterprises, and local authorities in writing, and report to the Provincial People's Committee on the fulfillment of obligations as prescribed (clearly stating whether the unit or enterprise has completed or not completed its obligations). If the obligations have been completed as prescribed, operations will be permitted; if not, additional information will be required until the inspection confirms completion before operations are permitted.

3. Department of Industry and Trade:

a) When advising the Provincial People's Committee on the issuance or renewal of licenses for the use of industrial explosives, in addition to the procedures stipulated in Decision No. 65/2011/QD-UBND dated December 8, 2011, of the Provincial People's Committee on the promulgation of regulations on the management, business, supply, and use of industrial explosives in Nghe An province, units and enterprises must fulfill the following obligations:

- For cases of newly issued permits for the use of industrial explosives, units and businesses must fulfill their land lease obligations and deposit funds for environmental restoration.

For cases of renewing permits for the use of industrial explosives for mineral exploitation, units and enterprises must have documentation showing that they have completed land lease, deposited funds for environmental restoration, and paid all land lease fees and other tax, fee, and levy obligations as prescribed (notarized copies).

- For construction projects using industrial explosives, in addition to fulfilling their obligations as stipulated, units and businesses must have documentation (notarized copies) showing that they have completed all tax, fee, and levy obligations (in some key projects requiring accelerated construction progress as decided by the Provincial People's Committee).

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

4. Nghe An Tax Department:

a) Issue written guidelines to local authorities and relevant agencies regarding their responsibilities to units and enterprises in complying with State obligations on land rent, taxes, fees, and charges in mineral exploitation and construction activities before June 15, 2014.

b) To chair and coordinate with relevant departments and agencies and the People's Committees of districts, cities, and towns to regularly inspect and urge units and enterprises to fully comply with the payment of land rent, taxes, fees, and charges in mining activities and construction projects; and to take appropriate measures to ensure that units and enterprises fulfill their obligations to the State budget in accordance with the law.

c) Regularly issue written notices and publicize through media outlets the status of land rent, tax, fee, and levy payments by units and enterprises; upon discovering violations of land rent, tax, fee, and levy obligations by units and enterprises, they must promptly report to the Provincial People's Committee and coordinate with relevant agencies to strictly handle the violations in accordance with the law.

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 as prescribed.

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 inspect, urge, and supervise the fulfillment of obligations regarding land lease fees and environmental restoration deposits before commencing operations.

c) The Provincial People's Committee and relevant agencies may only be requested to reissue mining licenses when the units and enterprises have fully fulfilled their obligations regarding land rent, environmental restoration deposits, and all applicable taxes, fees, and charges (certified copies must be attached).

Directors of departments, heads of relevant agencies, and chairmen of the People's Committees of districts, cities, and towns are requested to seriously implement the above contents. In case of continued violations, the head of the agency or local government shall be held responsible before the Chairman of the Provincial People's Committee and before the law./.

Provincial People's Committee