The ordinance on charges and surcharges, which was issued in 2002, has helped mobilise all resources for national construction and defence. Resources collected from charges and surcharges have been invested in agriculture and rural infrastructure development. However, the implementation of regulations on charges and surcharges and mobilisation of other contributions from the public has revealed shortcomings, causing difficulties for people.

While debating the implementation of socio-economic development tasks at the current National Assembly session in Hanoi, many deputies pointed out the fact that people have to endure improper charges and surcharges, particularly in agricultural production. They quoted the latest statistics as saying that farmers now have to pay approximately 30 kinds of charges and surcharges. It is unacceptable, they said.

Explaining the reasons, the Government said that the annulment of charges and surcharges against the current legal system in localities has been slow going, while several charges and surcharges have even been issued beyond their capacity. Some localities have required high fees, particularly for infrastructure work, in reference to people’s income. Several kinds of contributions had not been made public for comment before they came into effect. Other social and humanitarian contributions are compulsory.

On March 6, 2006, the Government issued a decree revising some articles of its decree dated June 3, 2002, which details the implementation of the 2002 ordinance on charges and surcharges. However, many localities have issued improper charges and surcharges as well as contributions, which are comparatively high compared to people’s income, and violate the voluntary nature of charitable activities, thus sparking public outcry.

Under the new instruction, the Government decided to abolish 340 improper charges and surcharges not included in the 2002 ordinance. It also decided to exempt charges and surcharges for several services such as security, social order, prevention of natural calamities, residential and ID registration, and land use imposed on households and individuals in rural areas or those involved in agro-forestry and fishery production and trading.

The Government asked chairmen of provincial and municipal People’s Committees to shoulder the responsibility if charges and surcharges against the legal system are not annulled before November 30, 2007. 

The Government also maintained that charges and surcharges are ineffective unless they are issued by authorised agencies. Centrally run cities and provinces are allowed to propose amending and annulling improper charges and surcharges not suitable for the real situation in their localities to the authorised agencies.

The Prime Minister entrusted specific tasks and responsibilities to chairmen of the centrally run provinces and cities and relevant ministries, particularly the Ministry of Agriculture and Rural Development, to implement the instruction.