Clarification on Authority to Set Fee and Charge Rates: Provincial People's Council vs. Provincial People's Committee under the Law on Fees and Charges
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The Department for Tax, Fee and Charge Policy Management (Ministry of Finance) clarified the legal authority to set fee and charge rates at the provincial level. The question was whether the Provincial People's Council (PPC) could set a rate bracket and delegate authority to the Provincial People's Committee (Executive Committee) to determine the specific rate. The Ministry of Finance confirmed: under the Law on Fees and Charges and the State Budget Law, the authority to set fee and charge rates belongs to the Provincial People's Council, with no statutory delegation to the Provincial People's Committee. Accordingly, a PPC setting a bracket and delegating specific rate-setting to the executive committee is not compliant with the law. This is an important clarification for provincial authorities on fee management, affecting the legal validity of local fee-setting decisions.
Authority to Set Provincial Fee and Charge Rates: People's Council vs. People's Committee
Question
May a Provincial People's Council set a rate bracket and delegate authority to the Provincial People's Committee to determine the specific rate for fees and charges?
Legal Provisions
- Article 21(1) of the Law on Fees and Charges: The Provincial People's Council decides rates, exemptions, reductions, collection, payment, management, and use of fees and charges within its authority
- Article 22 of the Law on Fees and Charges: The Provincial People's Committee submits proposals to the People's Council, implements decisions, and reports results - it has no independent authority to set rates
- Article 31(1)(e) of the State Budget Law: The Provincial People's Council decides on fee, charge, and public contribution collection
Ministry of Finance Conclusion
Authority to set fee and charge rates belongs to the Provincial People's Council. The law does not provide for delegation to the Provincial People's Committee to decide specific rates. Localities must comply with the applicable law.