President Nguyen Minh Triet promulgated Viet Nam’s first Environmental Tax Law
as well as new Insurance Business an and Securities Laws yesterday, Dec 15.

He also proclaimed the
Resolution governing Agricultural Land-use Tax Exemption and Reduction.

The National Assembly
approved all the new legislations at its 8th session which ended last month.

The Environmental Tax
will become effective on January 1, 2011 and makes products made from oil and
gas, coal and the hydro-chloro-fluro-carbons, HCFCs, used in refrigeration
liable for tax.

These include plastic
bags, pesticides, agricultural-produce preservatives, warehouse sanitisers and
chemicals to kill termites.

The tax was necessary
to help protect the environment, explained Deputy Finance Minister Do Hoang Anh
Tuan.

Economic growth and
urban development had damaged the environment and the tax would raise public
awareness about the need to protect it; enhance State management, endorse Viet
Nam’s international commitment and increase the public’s contribution, he said.

Insurance

The president’s office
says the Insurance Business Law was revised to meet the country’s commitment to
World Trade Organisation membership; harmonise relevant bills and improve State
management.

The amended law
defines a broader classification of insurance products and insurance bidding.

Specifically, it
includes regulations for the supply of cross-border insurance services;
compulsory reassurance, insurance bidding and co-operation and competition in
insurance services.

It also regulates the
supervision of insurance providers from start-up.

The legislation is
intended to strengthen the payment capacity of insurance providers and makes it
compulsory for them to invest in the establishment of fund for protecting the
insured.

The law takes effect
on July 1 next year.

Securities

The revised securities
law makes it compulsory for public companies to list shares on the stock market
within a year of their Initial Public Offering.

It is intended to
limit over-the-counter market sales; create equality of securities exchanges;
enhance the State management and accord with international regulations.

The law also extends
the regulations governing the management of public companies; the organisation
of the stock market and its links with other stock markets; securities and fund
management companies, private securities offerings and the dissemination of
market information.

State Securities
Commission chairman Vu Bang said Viet Nam’s securities market had grown rapidly
since the law took effect four years ago and the amendments were essential to
meet its real demands.

Exemption

The Resolution
governing Agricultural Land-use Tax Exemption and Reduction allows tax
exemptions for:

Land for research and
experimental production; arable land used for at least one yearly rice crop;
land for salt production; and land the State allocates to impoverished
households and for agricultural production.

The tax for land the
State assigns to the armed forces; economic and socio-political organisations
and other agencies for agricultural production will attract a tax reduction of
50 per cent.

Unused agricultural
land not used for production or leases will be forfeit or attract 100 per cent
of the tax.

The resolution will
take effect from January to December 2020.

VietNamNet/Viet
Nam News