Mongolian Law on Water and Mineral Water Use Fees

• ' THE MONGOLIAN UW ON WATER AND MIN~A~R~U~E:\ :I;Z::;J;:E:"::;;: =:= ., , . ~~~ OFF.lCIAL TRANSLATION TIiEMONGOLIANIAW ONWATERAND MINERAL WATERUSEFEES May 22,1995 Ulaanbaatar Article 1. Purpose nftbis Law The purpose ofthis Lawis to regulate thefoe requirements fortheuseofwater and mineral waterbycitizens. economic entities, andorganizations and incorpo­ rating these fees into the Slate budget Article 2. Legi~lation onWater and Mineral Water Use Fees The legislation on waterand mineral water usefees(hereinafter referred toas "fees") consists of the General Lawon Taxation, the Lawon Water, the present Lawand other legislative actsissuedin conformity withthem. Article3. FeePayers and Their ne~istration 1.Citizens ofMongolia, foreign citizens, persons withnocitizenship (herein­ after referredto as citizen"), economic entities, and organizations usingwater, mineral watersand/or riparian zones in Mongolia for any purposeshallbe fee payers. 2.The issuance ofpermits to waterandmineral users shallbe regulated bythe Mongolian LawonWater. 3.Officials issuing waterandmineral waterusepermitsshall,withintendays after issuingsuchpermit,submitto the tax department information oneconomic entitiesand organizations permitted to uscwaterand mineralwater reserves for production or servicepurposes. Basedon this information, the tax department shall registerfeepayers. 4. The information on fcc payers shall includeinformation necessary for tax controlsuchas the nameof the economic entityororganizationusingwaterand mineral waters, theiraddress, State registration number, thewateror mineral water location, as wellas the durationofuse and equipment capacity. Article 4. Items Subject to Fees A fccshallbeimposed for theuseof water, mineralwaterand riparianzones for the following purposes: ~ 139 THE MONQOUAN LAW ON WATER AND MINERAL WATER USE FEES ~-.,,. 11 potablewater and waterusedfor householdneeds, production and service purposes; '. 21 mineral waterusedformedical treatment, health, heating,production and service purposes; 31 riparian zonesusedforproduction and servicepurposes including produc­ ing cncrgy'transportation. breeding and/or raising water nota and fauna. Article 5: Assessment orWater Reserves The Government shall approveecological and economic assessments OfW3­ tel'reserves on thebasisofrecommendations bythe State Administrative Central Organization in chargeofnatureand environment. Article 6. AssessmentIndicators for Fees 1. The following indicators shall be used to assess fees for the lise of water andriparianzones: II for production and servicepurposessuch as hydroelectric power stations, water transportation, breedingand raising of water flora and fauna, navel ami sport, the fee shall be calculatedas a percentage of the production or service sales income; 21 forpotablewaterand waterusedbycitizens.economic entities andorgani­ zations for household, production. service and commercial purposes, the fee shall be calculatedaccordingto cubic. metersof'water used. 2. The following indicatorsshallbeused to assess feesfor mineralwaterusc: II for medical treatmentand health purposes, tae feeshall becalculatedac­ cording to the number of people treated or served multipliedby the number of daysof treatment or service; 21 for productionpurposes, the feeshall be calculatedaccording to the cubic meters used; and 31 for heating, the fee shall be calculated according tc the cubic meters of space heated. Article 7. Fee Rates and Amounts I. Fee rates and amounts for water use shall be determined according to the feeassessment indicatorunits described in paragraph 1of Article6 ('If this Law and withinthefollowing limits: 14C m& MONGOLIAN LAW ON WATER AND MINERAL WATER USE FEES ubject to Fees Unit I Fee Limits I Surface and Well Wllter Ground WaterI I minimum· maximum ree. minimum. maximum fees me earned from ion or services hy~roclec~ric I tations, water tation, b'«ding~ only distribute ra and fauna, td sp"~!!:.-. . ~/a 0.1- 0.5 .••. ubic meter for water and water ITngrig household s 1.00· la.DO :ui~lc-i'ne'lei of... ... ... - .... ...... - ......-.- ...- . . .......-- - . --.-.. ' for proouction, i or commerce by economic entities iizntions. Tugrig 1.00 - 5.00 1.00 - 20.00 Lwa:~s I · I. lnco :,rcduct I such as power s I transpor I ofcomm water flo ~-i:~;~r3~ I potable I used for i PIIII~()5 C: 3. I'er\ I wate., used services I citizens, ~. or orgar ;:. Feeratesandamountsformineralwateruse shallbedetermined according to the feeassessment indicator units describedin paragraph 2 ofArticle6 of this Lawand withinthefollowing limits: Fee Limits (in Thl!ril!) I person Idayl I I cubic I meters! 10- 50 500-1,500 5-40 1,000-3,000 I 3. The ratesand amountsfor waterusefeesshallbedeterminedby the Gov­ emmenrwithinthe limitsestablished in paragraph 1ofthis Article. The rates and amountsfor mineralwaterusefeesshall bedeterminedby the Aimagor Capital CityCitizenRepresentative Khurals withinthe limits established inparagraph2of this Article. 141 THE MONGOUAN LAW ON WATER AND MINl:1W. W.\T~RUS£! F'EES 4. For the uscof hot mineralwatersforheatingpurposes with no impacton its main usc, the fee shall be fifty per cent (50%) of the fcc for heating in the local area. 5. For the use of natural hotsprings for heating purposes, the feeshall benot more than fiftypercent (50%) of thefee for heating in the local area. For use in servicesor for household purposes, the fcc shall be not more than fifty per cent (50%) of the water and mineral water use fee as determined by the Aimag or CapitalCityCitizen Representative Khurals. 6~ Thefee ratesand amountssetout in paragraphs3 and 5 of this Articleshall differfromeachotherdepending on the localenvironment and climateconditions and in consideration ofthe quality, form, or purpose ofuseof thewateror mineral water reserves. . Article 8. FeeExemptions andDiscounts 1. A fee payer shall be exempt if the purpose of water use is any of the following: 11 for potablewater or water used for household needs, livestock, animals, and familyvegetablegardens; 21 for extinguishingfires andfightingother natural disasters;and 3/ for reuse ofwater for industrial technological needs. 2. Ifwater is used for the followingpurposes, the fee may be reduced by a certain percentageas establishedby the Government: 11 wherewater mineral contentis reducedduring use; 21 rehabilitation of natural resources by protecting,breeding or introducing wildanimalsand cultivationofplants. Article9. FeeR.equimnenu,Payment, and Reporting 1. Feepayerswith a properpermit for useof water reservesfor production.or service purposesshall calculate the monthly fee based on the amount of water used as measuredby a water measurement deviceor, iflhere is no such device, then by calculating the amount basedon the processing technology and equip­ ment capacity, or the amountof water needed per product unit and pay the monthlyfee to the localbudgetby the 10thof the following monthand submitan annual feereport and final accounting to the relevant tax departmentbythe 10th of Januaryof the following year. 142 mE "tONQOUAN LAW ON WATER ANDMINEA.lL WATER UCEFEES e=cl"" 2. Fcc payerswith a permanent permit for the use of mineral water reserves shall calculate the monthlyfeefor mineral waterusedformedical treatmentand' health purposes based on the number of person/days for people treated for health pnf1XlSCS, andthe amountof mineral waterusedforheatingshallbe calcu­ latedbasedOil thevolumeof spaceheated,and the amountof mineralwaterused as raw materialforcommercial purposesshallbe calculatedby a watermeasure­ ment deviceor, if there is no such device,then bycalculatingthe amountbased on the processingtechnology and equipment capacity, or the amount of water neededper productunit and pay the monthly fee to the localbudgetbythe lOth of the (allowingmonthand submitan annual fee reportand fincH accouriting to the relevanttax departmentby the lOthof Januaryof thefollowing year. .3. Citizens individually using mineral water reserves which have an estab­ lishedtreatmentqualityand composition andwhichareregularly usedat the local levelshall paythe costper day for medicaltreatment to an official appointedby athe Soumor DuuregGovernors in cash or bybank transferto the localbudget. 4. Theofficialappointed bythe Soumor DuuregGovernor shall submitupon receiptthe feescollected in cash to the Soumand Duuregbudgetsas providedin paragraph3 of thisArticle. 5. Annual fee reportsforwater,mineralwater,and riparian zoneuseshallbe submittedby the following dates: 11 byJanuary10ofthe fellowingyear,officialsappointedbylocal Soum and Duureg'Governor shall submitreportson feespaid to the localbudgetin cashor by bank transfer to the localSoumand Duureg taxdepartment; 21 by January IS of the following year, Soum and Duureg reports shall be submittedto the Aimagand CapitalCitytax departments; 3/byFebrwuy 1ofthe following year,Aimagand Capital Cityreports shallbe submitted to the StateGeneralTax Office~ 41 byFebruary IS of the following year, the State General Tax Office shall prepare a Stateconsolidatedfee report. 6.Fee report formsshallbeapprovedby the StateGeneral TaxOffice. Article 10. Fee Refunds 1. Feespaid in accordance with paragraph3 Of Article9 of'this Lawmay be refundedin the following cases: 11 ifpaid in excessive amounts; 2/ If forvalid reasons. mineralwater is no longerusable. 143 THE "'ONGOUAN LAW ON WATER ANO MINERAL WATER liS!: fEES 2. Refundsofpaymentstopayersas definedin paragraph 3 of Article3ofthis Law shall beregulatedby the GeneralLawon Taxation. Article 11. FccComplaints Citizens, economic entities,and organizations shallsubmittheir fcc complaints to the relevant tax departmentwithin 30 calendardaysof submitting fees. Where the decisionof that tax department is not accepted,complaints maybesubmitted to the courts. Article 12. Liability(or Viobtion ofLeglslation onWater and Mineral Water Use . l. If violation of paragraph 4 of Article 9 of this Law is not subject to the CriminalCode, a taxinspector may impose the following penalties on anofficial authorized to collect fees: 1/ for failure to collect or partial collectionof fees.or confusion of documen­ tation and accounting,or failureto deposit feescollectedin cash into the relevant budget, the person responsible shall besubject to a fine of up to 25,000 Tugrig. 2. Penalties for fee payers as defined in this Law shall be regulated by the General LawonTaxation. Article 13. Control Oyer Implementation ofLegislation The StateGeneral TaxOffice, tileStateAdministrative Central and Local Orga­ nizations in charge of nature and environment, G()vernor.~ ofall levels,and other organizationsand officialsauthorizedby law and regulationshall exercisecontrol over the implementationof this Law pursuant to their respective powers. Article 14. EffectiveDateofthi!lLaw This J...:.lW shall take effect 011July I, 1995. 144