The Carbon Tax has been imposed under the Finance Act, No.35 of 2018. The tax liability depends on the age from the first registration, engine capacity and the fuel type of the vehicle but having considered the requests from the Public, the observations of the experts and the difficulty of implementation at the Divisional Secretariat level, the basis of the chargeability of the tax has been decided to be changed.
Accordingly, the proposal made by the Minister of Finance, to instruct the Legal Draftsman to draft amendments to be moved at the Committee Stage of the Finance Bill enabling to charge the tax as payable at the rate and the manner prescribed on the consumption of fuel by the Minister of Finance, was approved by the Cabinet.
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