Colourful debate on green fees

Phung Quoc Hien, chairman of the National Assembly’s Finance and Budget Committee, said after the Environment Tax Law came into effect from January 1, 2012, it would be questionable whether environment protection fees should continue to be applied.

Ha Van Hien, chairman of the National Assembly’s Economic Committee, said it was reasonable to impose the fees when the environment tax did not exist, but they should be binned when the tax came into force to lessen the burden on taxpayers’ shoulders.

“Environment protection fees are imposed on producers who cause environmental pollution, while the environment tax is for products which have bad impacts on the environment. Whatever tax or fee is applied, consumers will still be the last to bear the cost,” Hien said.

Nguyen Xuan Tuong, general director of Phuoc Son Gold Mining Company, said that environment fees were a form of second royalty tax for miners.

“Enterprises must spend money on implementing environment obligations in compliance with the approved environmental impact assessment report, but also pay fees for environment protection,” Tuong added.

Uong Chung Luu, the National Assembly’s Deputy Chairman, said all environment protection fees should be changed to a tax and the state budget should only collect either tax or fee.

“This will contribute to the state budget to solve the environmental problems and also guarantee the competitiveness of domestic products against others in the foreign markets,” Luu added.

Meanwhile, Hien said it was impossible to combine the environment tax and fees because they had a basic difference.

“Environment fees are applied for production processes which cause environmental pollution. If the tax and fees were combined, it would not encourage enterprises to find new ways to renovate the technology to protect the environment,” Hien said.

However, Minister of Finance Vu Van Ninh said the tax and fee combination would cause a lack of fairness in the business environment. “For example, an enterprise which pollutes the environment at the exploration place will have to pay the environment protection fees. However, if its products do not badly impact on the environment, the enterprise will not have to pay the environment tax,” Ninh said.