The proposed carbon tax for motor cars will cost the owners Rs. 2,000 a year, the government has decided. The tax will come into effect from next year replacing the practice of paying private companies for emission tests, for which motor car owners now pay Rs. 1,100 for a year. Accordingly, all vehicle owners will [...]

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Carbon tax Rs. 2,000; smoke test on the house

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The proposed carbon tax for motor cars will cost the owners Rs. 2,000 a year, the government has decided.
The tax will come into effect from next year replacing the practice of paying private companies for emission tests, for which motor car owners now pay Rs. 1,100 for a year.

Accordingly, all vehicle owners will have to pay the carbon tax to the Department for the Registration of Motor Vehicles (RMV) after they obtain a green test certificate from a private company free of charge. Dual purpose vehicle owners will have to pay Rs. 2,500 compared to Rs. 1,190 paid for the emission test while van owners will have to pay Rs. 2,500 compared to Rs. 1,010 paid now. Lorry owners will pay Rs 2,500 compared to Rs 1,550.

Motorcycle owners who now pay Rs. 400 for the emission test will be required to pay Rs. 600, while three-wheelers will pay Rs. 750 instead of Rs. 500.
For buses, the tax will be Rs 1,750 compared to Rs. 1,000 now and for prime movers Rs. 2,500 compared to Rs 1,650 now.

According to the Budget proposals, the Government hopes to raise Rs. 4,355 million annually with the imposition of the carbon tax with the highest revenue coming from motorcyclists, who will pay Rs. 1,200 million.

At present Sri Lanka has 3.9 million vehicles including two million motorcycles.

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