Carbon Tax applies to State-owned vehicles too : Finance Ministry

Responding to criticism, Finance and Mass Media Ministry said yesterday that the Carbon Tax, which came into effect from January this year, is applicable to State-owned vehicles as well.

In a statement, the ministry said only electric vehicles (EVs) are exempted from it.

“According to the Finance Act No. 35 of 2018, the registered owner of any vehicle shall pay the carbon tax every year, other than for the first year of the registration at the time of renewal of the annual registration of the vehicle,” the statement said.

The carbon tax is levied under three categories based on cubic centimeter (CC) capacity. However, the emissions tax private citizens have been paying for years still does not apply to state-owned vehicles.  

It is mandated for all privately owned vehicles to undergo an emissions test every year, prior to the renewal of the revenue license. 

Three private companies carry out these tests and they charge the tax from the vehicle owners on government’s behalf.