State vehicles subjected to carbon tax: Finance Ministry

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, the Ministry of Finance and Media said in a statement.

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

This was in response to various misinformation on social media that said that all State-owned vehicles are exempted from the carbon tax. Ministry sources confirmed that every single State-owned vehicle will be subjected to a 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.