The Ministry of Transportation and Communications on Wednesday said that fuel surcharges for highway maintenance and air pollution would still be based on the number of vehicles a person owns, but the Institute of Transportation is to discuss changing the system and have the levy added to fuel prices.
The debate over how motorists should pay the surcharges resurfaced after proposals that the charges be added to the cost of fuel on the government’s public policy online forum.
The Highway Act (公路法) states that fuel surcharges are to be used to finance highway maintenance, construction and safety management, the ministry said in a statement.
Drivers pay the surcharge because they use the roads built using public funds and the pricing mechanism is used to curb carbon emissions, prevent air pollution and conserve energy, the ministry said.
The government charges drivers an air pollution fee as well, the ministry added.
With the development of electric vehicles, there is no longer a definite relationship between fuel usage and road maintenance and road safety management costs, the ministry said.
“The nation had tried collecting the fuel surcharge whenever drivers purchased fuel. It resulted in market chaos. Non-automotive fuel was sold to drivers,” the ministry said, adding that the surcharge is calculated by using the average driving distance per day and the average amount of fuel used daily nationwide.
Any change in how the surcharge is applied should also ensure that there would be a reliable source of revenue for road maintenance and that there would be no substantial increase in operational costs.
“Electric-powered or other energy-conserving vehicles, which do not carry a fuel surcharge, are more expensive than petroleum-powered vehicles. People on a low income can only afford to buy vehicles of the latter category. If the surcharge were charged when people buy fuel, those with a low income would end up paying more and subsidizing motorists with a high income,” the ministry said.
The government must also distinguish between petroleum-powered vehicles that use roads and machinery used on farm lands and fishing boats, the ministry said, adding that this would require a way to verify users’ identities and vehicle purposes.
“The significant price difference between automotive fuel and non-automotive fuels would also make it inevitable that non-automotive fuels will be sold widely in the market, which would lead to a shortage in revenue from the collection of the fuel surcharge. The shortage would in turn be covered by all taxpayers, rather than just road users,” the ministry said.
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