Department of Finance responds to voters' opinions in Hoang Mai, Vinh City about environmental sanitation fee collection

Voters: Ho Ngoc Trung, Chairman of the Fatherland Front Committee of Quynh Phuong Ward; Ho Sy Tung, Secretary of the Party Committee of Quynh Thien Ward, Hoang Mai Town, reflected that the environmental protection fee according to Decision No. 19/2019/QD-UBND of the Provincial People's Committee is not enough to pay for environmental companies, and proposed to allow the collection of environmental sanitation fees according to each type of business to ensure a balanced source of revenue and expenditure for environmental sanitation work.

Regarding this content, the Department of Finance responded as follows:

- Regarding the opinion that the environmental protection fee collection level according to Decision No. 19/2019/QD-UBND of the Provincial People's Committee is not enough to cover the payment to environmental companies:

Decision No. 19/2019/QD-UBND of the Provincial People's Committee stipulates the maximum price for collection, transportation and treatment of household waste in Nghe An province, specifically at Point a, b Clause 1, Article 4 of Decision No. 19/2019/QD-UBND stipulates: “1. People's Committees of districts, cities and towns: a) Based on the maximum price for collection, transportation and treatment of household waste prescribed in Article 2 of this Decision, the People's Committees of districts, cities and towns shall appraise specific prices, suitable to socio -economic conditions, contribution capacity of subjects in the area and not exceeding the maximum price as prescribed in Article 2 of this Decision; b) In case the amount collected from service prices is not enough to cover the cost of collection, transportation and treatment of household waste, the People's Committees of districts, cities and towns shall use the environmental career fund and balance and arrange funds from District budget to compensate organizations and individuals assigned or ordered to perform the task of collecting, transporting and treating domestic waste in the area.

Accordingly, regarding voters' opinions on the case where the amount collected from service prices is not enough to cover the costs of collecting, transporting, and treating household waste (the amount collected is not enough to cover the costs for environmental companies), the People's Committees of districts, cities, and towns shall use environmental career funds and balance and arrange funds from the district-level budget to compensate organizations and individuals assigned or ordered to perform the tasks of collecting, transporting, and treating household waste in the area.

- Regarding the proposal to allow environmental sanitation fee collection according to business type to ensure balanced revenue and expenditure for environmental sanitation work:

The price of collection, transportation and treatment of domestic solid waste services prescribed in Decision No. 19/2019/QD-UBND is classified according to the collection subjects (households, agencies, organizations, business households, etc.) In addition, business households have also basically classified business services). At the same time, Clause 1, Article 79 of the Law on Environmental Protection 2020 (effective from January 1, 2022) stipulates: “1. The price of collection, transportation and treatment of domestic solid waste services from households and individuals is calculated based on the following: a) In accordance with the provisions of law on prices; b) Based on the mass or volume of waste that has been classified;...”.

In Clause 2, Article 29, Circular No. 02/2022/TT-BTNMT dated January 10, 2022 of the Ministry of Natural Resources and Environment detailing the implementation of a number of articles of the Law on Environmental Protection stipulates as follows: “2. The principles of service pricing applicable to organizations and individuals generating domestic solid waste are stipulated as follows: a) Prices for services of collection, transportation and treatment of domestic solid waste generated by households, individuals and subjects specified in Clause 1, Article 58, Decree No. 08/2022/ND-CP are calculated according to the principle of compensation through the local budget; b) Prices for services of collection, transportation and treatment of domestic solid waste generated by agencies, organizations, production, business and service establishments, investors in construction and business of infrastructure of concentrated production, business and service areas, industrial clusters as prescribed in Clause 2, Article 58, Decree No. 08/2022/ND-CP are calculated according to the principle of compensation through the local budget; 58, Decree No. 08/2022/ND-CP is calculated on the principle of correctly and fully calculating the costs for collection, transportation and treatment activities".

Up to now, the unit price for collection, transportation and treatment of domestic waste according to Decision No. 19/2019/QD-UBND is calculated by household (for non-business households); by household, unit (for households participating in business, production and business units)... but has not been collected by weight or volume. Therefore, after the Ministry of Natural Resources and Environment issues guidelines on norms for collection, transportation and treatment of domestic solid waste, based on the functions, tasks and assignments of the Provincial People's Committee, the Department of Natural Resources and Environment, the Department of Finance and relevant agencies will promptly coordinate to develop prices for collection, transportation and treatment of solid waste services in accordance with current legal regulations.

Voters of Le Loi and Hong Son wards, Vinh city, proposed that there should be regulations on sanctions for organizations, individuals and businesses that do not comply with paying environmental sanitation service prices according to Decision 19/2019/QD-UBND dated May 28, 2019 of the Provincial People's Committee regulating the maximum price for collection, transportation and treatment of household waste in the area.

Regarding this content, the Department of Finance responded as follows:

According to the provisions of Article 16 of Decree No. 38/2015/ND-CP dated April 24, 2015 of the Government on waste and scrap management, it is stipulated that: “Article 16. Responsibilities of organizations and individuals generating domestic solid waste: 1. Implement the classification and storage of domestic solid waste according to the provisions of Article 15 of this Decree; 2. Households and individuals must pay sanitation fees for the collection and transportation of domestic solid waste according to regulations; 3. The owner of the source of domestic solid waste is responsible for signing a service contract for collection, transportation and treatment; and paying all costs according to the service contract”.

Garbage on the Vinh River road and the Vinh River bank. Photo: Archive

Currently, the Law on Environmental Protection 2020 and related Decrees and Circulars guiding the Law on Environmental Protection do not mention the content of sanctions for cases where individuals and organizations do not comply with paying environmental sanitation service fees. Decree 109/2013/ND-CP stipulating sanctions for administrative violations in the field of price, fee, charge and invoice management also does not have regulations on non-compliance with paying environmental sanitation service fees (collection, transportation and treatment of domestic waste). Accordingly, the Department of Finance records the opinions of voters to report to competent authorities for consideration and decision. When there are specific regulations of competent authorities and assignment according to functions and tasks, the Department of Finance will promptly coordinate with the Department of Natural Resources and Environment and relevant agencies to advise the Provincial People's Committee to issue sanctions to ensure compliance with regulations.

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