Government imposes green tax on petroleum products

KATHMANDU: The government has introduced a green tax on petroleum products, coal, and other related commodities.

Finance Minister Barshaman Pun presented the Economic Bill, 2081, at a joint session of the Federal Parliament on Tuesday. 

The bill stipulates that a green tax of Re 1 per litre will be imposed on petrol and diesel. This tax has been proposed with the objective of curbing the consumption of fossil fuels. 

In a similar vein, a green tax of 0.5% will be applied to furnace oil and base oil, and a 1% tax will be levied on lubricant oil. Petroleum oil and oil derived from bituminous minerals, constituting 70% or more of petroleum oil, will also be subject to a 1% tax.