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Ministry slaps surcharge on fuel to fund road upkeep
The Ministry of Transport has approved a VND1000/litre surcharge on petrol for cars and bikes and a fee for diesel vehicles to raise VND5.92 trillion (US$311 million) a year for road maintenance.
Ministry's roads department Deputy Director Nguyen Van Quyen said the surcharge on 2.97 billion petroleum litres consumed annually by motorbikes and cars would total VND2.97 trillion ($156 million).
For diesel vehicles, a fee would be paid at the time of its compulsory monthly test for road worthiness, under five classifications: trucks under two tonnes or cars under 12 seats VND180,000 ($9.47) a month; trucks 2-4 tonnes or cars 12-30 seats VND270,000 ($14) a month; trucks 4-10 tonnes and cars more than 31 seats VND396,000 ($20.8) a month, trucks 10-18 tonnes and containers 20 feet high VND720,000 ($37.8) a month; and others VND1.4 million ($73.6) a month.
The total fee forecast from diesel vehicles was VND2.95 trillion ($155 million) a year.
Department statistics show that of 17,228km of national highway, only 1,000km is maintained each year while the number of vehicles travelling on roads and streets is on the increase. For example, nearly 125,000 vehicles a day travel on National Highway 1, up 34.5 per cent on last year.
Department official Nguyen Duc Duy said the budget funds for maintenance of the national highway covered only 40 per cent of that required while local roads were rarely maintained.
Duy said the surcharge and fees would produce 80 per cent of funds required for road maintenance.
Viet Nam Automobile Transport Association chairman Nguyen Manh Hung said if that was the case, road toll booths should stop operating otherwise motorists would be paying twice.
Ha Noi's Thai Ha Street citizen Nguyen Van Ngu said road construction was funded by citizens' taxes so they should not have to pay more.
Transport Planning and Management Institute deputy director Khuat Viet Hung said it was necessary to differentiate for petrol machines used in agricultural and industry which would not be used for travelling.
TT Transport Company Director Le Trong Tai said the fees were too high and would push transport costs up for enterprises.
Duy said the fee would drive transport costs up 1.5 per cent in the short term, but in the long term transport costs would come down by 4.5 per cent due to better roads.
This way of collecting road maintenance fee will be submitted to the Prime Minister for approval by the end of June.
vietnamnews
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