CARBON TAX FROM JANUARY 1

Electric cars will be exempt from this tax

Hybrid vehicles using petrol or diesel with a manufacture date of less than five years will be liable for this tax Tax on fossil-fuelled vehicles including cars using petrol will be taxed Passenger buses with a manufacture date of less than five years will also be taxed

While exempting electric cars, a Carbon Tax will be imposed on directly fossilfueled vehicles including petrol cars from January 1, Department of Motor Traffic (DMT) Commissioner General A.H.K. Jagath Chandrasiri said.

He told the media that the carbon tax will be based on the fuel consumption of vehicles.

“The tax will be charged under the 2018 financial Act and under three categories -- the manufacturing year of the vehicles of less than five years, between five and ten years and more than ten years,” the Commissioner said. “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 Commissioner said 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.

He said passenger transport buses with a manufacture year of less than five years will be charged Rs.1,000, between five and ten years charged Rs.2,000 and more than ten years Rs.3,000. Charges would be made through the provincial DMT commissioners when obtaining the revenue license.

“Carbon tax charges would not be compulsory for this year but from the year 2020, the carbon tax will be a must. When obtaining the revenue license in 2020 the charge would be collected along with the charges of 2019,” the Commissioner said. All Provincial Secretaries and District Secretaries have been advised in this regard.