Environmental protection tax on iron ore in Vietnam

Iron ore products are not subject to environmental protection tax.

Ministry of Finance issued letter no. 2380/BTC-CST dated 1 mar 2019 for Responding to Official Letter No. 19F-2018 / TP-TCHQ dated December 3, 2018 of Thien Phu Production-Construction-Trading Co., Ltd about applying environmental protection tax on iron ore and Ministry Finance has the following opinion . The content is as below:

In Article 3 and Clause 1, Article 4 of the Law on Environmental Protection Tax:

Article 3. Taxable subject

  1. Gasoline, oil, grease, including:
  2. a) Gasoline, except ethanol;
  3. b) aircraft fuel;
  4. c) diesel oil;
  5. d) Petroleum;
  6. e) Fuel oil;
  7. f) lubricants;
  8. g) Grease.
  9. Coal, including:
  10. a) Lignite;
  11. b) Anthracite Coal (anthracite);
  12. c) Fat coal;
  13. d) Other coal.
  14. Hydrogen-chlorofluorocarbon liquid (HCFC).
  15. Taxable-plastic bag.
  16. Herbicide which is restricted from use.
  17. Pesticide which is restricted from use.
  18. Forest product preservative which is restricted from use.
  19. Warehouse disinfectant which is restricted from use.
  20. When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.

Article 4Un-taxable object

  1. Goods is not specified in Article 3 of this Law shall not be subject to environmental tax.

Thus, according to the current Law on Environmental Protection Tax, iron ore products are not subject to environmental protection tax. Therefore, there is no basis to collect environmental protection tax on iron ore.

The Ministry of Finance would like to acknowledge the petition on the application of environmental protection tax on iron ore products of the Company. The Ministry of Finance shall coordinate with the concerned ministries and branches in studying and reporting to the competent authorities on this issue when amending the current Law on Environmental Protection Tax.

The Ministry of Finance responded to Thien Phu Production-Trading-Construction Company Limited.

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