Jan 17, 2019

State vehicles, not exempted from carbon tax

The Ministry of Finance and Mass Media wishes to emphasize that there is no truth in reports claiming that state owned vehicles are to be exempted from the carbon tax.

The media release issued on this regard further adds :

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.

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.

Type of vehicle

Less than 5 years

5 to 10 years

Over 10 years


25 Cts per cm3

50 Cts per cm3

Rs. 1.00 per cm3


50 Cts per cm3

Rs 1.00 per cm3

Rs 1.50 per cm3

Passenger bus

Rs. 1,000/=

Rs. 2,000/=

Rs. 3,000/=