FY 2024/25 Budget: Green tax on petrol and diesel

Kathmandu: The government has imposed a green tax on petroleum products, coal and other related goods.

The Economic Bill-2081 presented in the joint meeting of the Federal Parliament on Tuesday by Finance Minister Barshaman Pun states that a green tax will be levied at the rate of Rs.1 per litre on petrol and diesel.

The tax has been proposed to reduce the use of fossil fuels.

Similarly, a green tax equal to 0.5 per cent will be levied on furnace oil, base oil and one per cent on lubricant oil.

Petroleum oil and oil obtained from bituminous minerals, 70 per cent or more of petroleum oil will also be taxed by one per cent.