Saigon Water Corporation (Sawaco), which takes charge of managing and supplying tap water in Ho Chi Minh City, will collect a wastewater drainage and treatment service fee equivalent to 25 percent for each water bill from next year.

With the current lowest block of four cubic meters of tap water per person each month, priced at VND6,700 (US$0.27) per cubic meter, the corresponding wastewater drainage and treatment service fee would be VND1,675 ($0.06) per cubic meter.

For businesses and service providers subject to the highest water tariff of VND21,300 ($0.86) per cubic meter per month, the fee would amount to some VND5,325 ($0.21) per cubic meter.

Aside from the wastewater drainage and treatment service fee, tap water consumers in the southern Vietnamese hub will have to pay value added tax (VAT), calculated to be eight percent of the wastewater drainage and treatment service fee in phase one between January 1 and June 30, 2024 and 10 percent for the rest of next year.

Accordingly, the VAT of VND134 per cubic meter in phase one and VND167.5 in phase two will be levied on the minimum consumption block of four cubic meters of tap water.

As per the highest water tariff, the VAT will be VND426 ($0.01) and VND532.5 ($0.02) per cubic meter, respectively.

Simply put, a customer with a monthly VND100,000 ($4.08) water bill will need to pay an extra VND25,000 ($1.02) for the wastewater drainage and treatment service fee, excluding the VAT.

The fee collection is stipulated in the municipal administration’s Decision 17 issued in 2021 and Resolution 110 passed in the sixth sitting of the 15th-tenure National Assembly.

Sawaco will provide a detailed explanation on the fee collection on water bills and its customer database system.

The tap water supplier noted that it will collect and send the fees to the city’s authorities.

Besides the lowest block tariff mentioned above, city customers are currently charged VND12,900 ($0.52) per cubic meter for the fourth to sixth cubic meter per person a month, and VND14,400 ($0.58) for the monthly consumption of more than six cubic meters.

Administrative agencies are subject to the monthly water rate of VND13,000 ($0.53) per cubic meter, while manufacturing facilities are charged VND12,100 ($0.49) per cubic meter.

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