Even State vehicles will have to pay carbon tax: Ministry

17 January 2019 03:35 pm

The Finance Ministry said today that State-owned vehicles were not exempted from the carbon tax as reported in the media.

Information Director M. Ali Hassen said the Carbon Tax, which came into effect from January this year would be applicable to all vehicles and the registered owners of every motor vehicle.

“Only electric vehicles are exempted from Carbon Tax, but all other vehicles including State-owned vehicles need to pay the carbon tax,” he said.

Mr. Hassen said there was no truth in the news, reported in the media that State-owned vehicles were exempted from the carbon tax

The new tax was imposed under the Finance Act No. 35 of 2018 with the registered owner of all relevant vehicles having to pay the carbon tax every year, other than the first year of the registration at the time of renewal of the annual vehicle registration.

The tax will be charged under three categories based on the year of manufacture of less than five years, between five and ten years and more than ten years. Hybrid vehicles using petrol or diesel and based on their engine capacity with a manufacture date of less than five years would be charged 25 cents for one cubic centimetre, between five and ten years 50 cents and more than ten years one rupee.

The vehicles using petrol or diesel with a manufacture year of less than five years would be charged 50 cents and between five and ten years one rupee and more than ten years Rs.1.50 or one cubic centimetre according to the engine capacity.

The passenger transport buses with a manufacture year of less than five years will be charged Rs.1,000, between five and ten years, Rs.2,000 and more than ten years, Rs.3,000. (Chaturanga Samarawickrama)