KATHMANDU, May 26: The Ministry of Finance is preparing to merge various existing fees and duties into a unified “green tax” through the upcoming fiscal year’s budget.
According to ministry officials, Finance Minister Dr Swarnim Wagle plans to consolidate pollution charges, infrastructure-related fees and other scattered duties under a single tax framework.
Currently, a pollution fee of Rs 1.50 per litre is imposed on petrol and diesel. In addition, a separate green tax of Re 1 per litre is collected on fuel to support environmental protection and renewable energy promotion.
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Likewise, road construction duties are levied on imported and domestically produced vehicles based on seating capacity, ranging from 5 to 10 percent.
Under the same category, the government also collects road maintenance and improvement charges of Rs 4 per litre on petrol and Rs 2 per litre on diesel.
According to Finance Ministry officials, preparations are underway to integrate such multiple fees and duties under a single heading as a green tax.
According to ministry officials, the plan is to remove duplicated charges under different headings and integrate others into a single rate.
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