Along with the development of the economy and society, air quality in major cities, craft villages and some industrial zones is increasingly deteriorating, causing serious harm to public health, economic losses, and environmental threats. Accordingly, on 21 November 2024, the Government issued Decree No. 153/2024/ND-CP regulating the environmental protection fee for emissions, which will take effect from 05 January 2025. This decree was issued to raise environmental awareness among organizations and individuals emitting pollutants, and the society as a whole.
In this article, BLawyers Vietnam presents 03 notes for emission facilities when fulfilling the responsibility of paying the environmental protection fee.
1. Fee-liable sources and payers of air emission environmental fees
Fee-liable sources for air emissions environmental fees include dust and industrial emissions discharged into the environment, which must be treated by projects, production facilities, businesses, and service establishments that are required to have an environmental permit in accordance with the law on environmental protection, including provisions on the discharge of air emissions (“Emission Facilities”). Specifically, these include:
- Facilities producing iron, steel, and metallurgy (excluding rolling, drawing, and casting from raw materials);
- Facilities producing basic inorganic chemicals (excluding industrial gases), inorganic fertilizers, and nitrogen compounds (excluding blending, repacking, and packaging), chemical pesticides (excluding blending, repacking);
- Oil refining and petrochemical facilities;
- Facilities recycling and treating household solid waste, general industrial solid waste, and hazardous waste; using imported scrap materials as raw materials for production;
- Facilities producing coke or coal gas;
- Thermal power plants;
- Cement production facilities; and
- Other production, business, and service facilities that generate dust and other industrial emissions.
The payers for environmental protection fees concerning emissions are the Emission Facilities listed above.
2. Environmental protection fee for emissions
During the fee payment period, the environmental protection fee is calculated using the following formula: F = f + C. In this formula, F is the total fee to be paid during the payment period; f is the fixed fee, and C is the variable fee, calculated quarterly. Accordingly, the environmental protection fee for emissions consists of two parts:
- The fixed fee (f) is VND3,000,000 per year, which is applicable to all Emission Facilities that are not required to monitor emissions, as well as to Emission Facilities that are required to monitor emissions, in order to cover the costs of treating substances beyond 04 pollutants (dust, NOx, SOx, CO).
- The variable fee (C) is an additional fee for facilities that are required to monitor emissions in order to ensure the treatment of 04 pollutants (dust, NOx, SOx, CO). Specifically, the fee is VND800 per ton for dust, VND800 per ton for NOx (including NO2 and NO), VND700 per ton for SOx, and VND500 per ton for CO.
In addition, the variable fee for pollutants in emissions with an average concentration value (calculated during the fee payment period) is determined according to the concentration index as follows:
- If the concentration is lower than 30% of the concentration of that substance specified in the environmental technical standards for emissions or local government regulations (if any): 75% of the fee must be paid.
- If the concentration is 30% or higher of the concentration of that substance specified in the environmental technical standards for emissions or local government regulations (if any): 50% of the fee must be paid.
Of note, the basis for determining cases a and b is the result of emissions monitoring and the environmental technical standards for emissions or local government regulations regarding the concentration of pollutants in emissions.
3. Method of paying the environmental protection fee for emissions
The Emission Facilities are responsible for paying the environmental protection fee to the Department of Natural Resources and Environment, or the Department of Natural Resources and Environment managing the facility, in the following ways:
- Payment made using a method other than cash to the fee collection organization’s designated account at a credit institution; or
- Payment made to the fee waiting account for budget submission of the fee collection organization at the State Treasury; or
- Payment made to the account of the receiving agency or organization other than the fee collection organization: Within 24 hours, the receiving agency or organization must transfer the entire amount collected to the fee collection organization’s designated account or transfer the entire amount to the fee waiting account for budget submission of the fee collection organization.
Emission Facilities must declare and pay the fee within the specified time frame. Specifically, for Emission Facilities subject to emissions monitoring, payment must be made quarterly, no later than the 20th of the first month of the following quarter; and for Emission Facilities not subject to emissions monitoring, the fee must be paid once for the entire year, no later than 31 January each year.
The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.
Date: 04 March 2025
Writer: Chau Dang
