State vehicles are not exempted from carbon tax: Finance Ministry

Sri Lanka’s Finance Ministry says the Carbon Tax, which came into effect from January this year, is applicable to all vehicles and the registered owners of every motor vehicle specified in the Act will have to pay this levy.

Only the electric vehicles are exempted from the Carbon Tax, but all other vehicles including the State-owned vehicles are liable for the carbon tax.

“The Finance Ministry wishes to emphasize that there is no truth in the news, reported in the media that all State-owned vehicles are exempted from the carbon tax,” a statement said.

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

The carbon tax is levied under three categories as follows based on each Cubic Centimeter capacity.

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