Sri Lanka plans to raise a carbon emission tax for cars by 80 percent to Rs. 2,000, which will be collected by state agencies, as opposed to private firms that carry out the testing. According to the proposed Budget 2017, the government will collect the tax, while private firms will carry out the test ‘free of charge.’

The budget proposal for this tax was made to boost tax revenues to finance higher state salaries and subsidies, which are believed to help the poor by reducing the need to print money. However, analysts warn that this could lead to a series of interventions, including effects on the banking system that could harm the public.