Sri Lanka scraps controversial carbon tax

ECONOMYNEXT – Sri Lanka will scrap a controversial carbon tax from the end of the year, under tax changes passed in parliament.

Sri Lanka brought a carbon tax for cars escalating for older cars used by less affluent persons who drive less.

But Finance Minister Mangala Samaraweera has now scrapped the tax. However it will be charged for 2019.

It will be removed from December 01, 2019.

Sri Lanka proposed the carbon tax despite charging a lower tax for diesel so that the more expensive fuel is cheaper at the pump than petrol, which has less carbon and more hydrogen.

Fuel generally attracts higher taxes. Sri Lanka also under prices and under taxes, kerosene. (Colombo/Oct172019)