Research and propose reduction of fees and charges due to the influence of fuel prices

Conduct impact assessment of fee reductions

Recently, Mr. Le Dinh Tho - Deputy Minister of Transport has received an official dispatch from the Ministry of Finance on the reduction of taxes, fees and charges in the field of transportation. Therefore, the Deputy Minister asked the specialized departments of maritime, waterway and railway to study the proposal to reduce fees and charges.

The official letter of the Ministry of Finance has clearly stated the responsibility of the Ministries to "recommend to the Government or the Ministry of Finance on the level of collection, payment, exemption, reduction, management and use for each charge and fee in the sector, management field” (Clause 4, Article 20 of the Law on Fees and Charges).

The Deputy Minister requested the Departments to carefully study the dispatch sent by the Ministry of Finance. The Departments urgently consider cases where it is necessary to reduce the fee for using railway infrastructure; fees for entering and leaving seaports; fees for entering and exiting ports and inland waterways to help businesses deal with difficulties encountered by rising fuel prices. At the same time, the Departments also need to assess the impact of reduced fees and charges on the state budget. Thereby, making a proposal to reduce the collection rate of each fee and fee and the appropriate time to reduce the collection of fees and charges, and report it to the Ministry for submission to the Ministry of Finance for study and promulgation of the Circular according to its competence.

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The Ministry of Transport proposes a specific reduction of fees and charges

According to the Ministry of Transport, the current law on fees and charges does not include regulations on the collection of fees and charges for petrol and oil. Therefore, the current fees and charges have no impact on increasing domestic fuel prices.

At the same time, fees and charges such as fees for using railway infrastructure; fees for entry and exit from seaports, inland waterway ports and wharves shall comply with promulgated regulations of law.

Specifically, the toll rate for using railway infrastructure stipulates a 50% reduction in toll rates (from 8% to 4% of rail transport revenue) from February 8, 2021 to the end of June. 2022 to support businesses before the impact of the Covid 19 epidemic.

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About the fee to enter and exit the seaport from 5-50 USD/time according to the vessel capacity. The fee for entering and exiting the domestic port is from 5,000-50,000 VND/trip depending on the tonnage of the cargo vehicle/driver.

The Ministry of Finance assesses that these fees and charges account for a small proportion of transportation costs. During the implementation process, the Ministry of Finance did not see any problems related to the collection of these fees and charges.

Therefore, the Ministry of Finance requested the Ministry of Transport to quickly assess the impact of the reduction of fees and charges on the payers of fees and charges and the state budget. Based on that, make recommendations to reduce the amount of each payment and send it to the Ministry of Finance to study and issue a Circular according to its competence and in accordance with the order of law.