The Ministry of Finance has recommended that the Road Maintenance Fund will not be funded by a tariff on petrol products.
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| The Ministry of Finance has recommended not including petrol fees in the Road Maintenance Fund |
Deputy Finance Minister Nguyen Thi Minh put the position at a recent meeting with the Ministry of Transport on the fund’s establishment prior to the submission of the final draft to the Prime Minister for ratification.
Minh proposed that the levels of fees collected on motorbikes and cars should be decided by individual localities. The Ministry of Transport would only regulate the framework for the fees.
Representatives from the Ministries of Finance and Justice said that the fund must be transparent in terms of funding and disbursements so that the public could see the benefits of the fund. They also suggested careful consideration on the proposed fee levels based on people’s general income, adding that it was necessary to make people understand the point of the fund’s operation.
Deputy Minister of Transport Nguyen Hong Truong agreed with the two ministries. The ministries agreed on two options to collect fees for the fund before the submission to the PM.
With the first option, the Road Maintenance Fund would mainly be based on fees imposed on means of transport, including motorbikes and cars, and additional capital sourced from the State budget.
The second option would see the fund receive fees via car owners, petrol sales and contributions from the State budget.
According to the ministries of Transport, Finance and Justice, the fund may officially become operational in July 2012. It is expected to meet 70% of the capital demand for road maintenance and repairs in the first year; and the total capital needed after a five-year period of operation.
The final draft will be sent to the PM no later than October 30.
