Clause 5

In addition to the taxes under section 11, a tax (referred to in this Act as the carbon emissions tax) shall be charged in respect of the first registration, on or after 1st July 2013, of any vehicle which has a carbon emission level exceeding the maximum limit of the neutral carbon emission band and which is of a prescribed description or within a prescribed class (referred to in this section to be a taxable vehicle).(2) The carbon emissions tax under subsection (1) —

shall be paid upon the first registration of a taxable vehicle by the person keeping the taxable vehicle; and

shall be the amount prescribed for that taxable vehicle.(3) Where a person who is registered as the owner of a vehicle (referred to in this section as the replaced vehicle) replaces that vehicle with another vehicle (referred to in this section as the replacement vehicle) which is a taxable vehicle, and the replacement vehicle has a carbon emission level exceeding that of the replaced vehicle, the person shall pay a tax which is the difference between —

the amount of the carbon emissions tax chargeable in respect of the replaced vehicle, if any; and

the amount of the carbon emissions tax chargeable in respect of the replacement vehicle as if the replacement vehicle had been first registered under this Act on the same date as the replaced vehicle.(4) The difference in tax referred to in subsection (3) shall be payable to the Registrar without demand within the prescribed time from the date the Registrar registers the particulars of the replacement vehicle.(5) The Minister may, subject to such conditions as he thinks fit to impose, prescribe —

a rebate on all or any part of the tax payable under section 11(1)(a) for vehicles of any class, category or description or vehicles used for different purposes which are registered on or after 1st January 2013 and have carbon emission levels falling below the minimum limit of the neutral carbon emission band; and

different amounts of rebate or the methods for determining the amount of the rebate for vehicles of different classes, categories or descriptions or vehicles used for different purposes which have carbon emission levels falling within any carbon emission band.(6) The Minister may make rules for carrying out or giving effect to this section and for prescribing anything which may be prescribed under this section and, in particular, the rules may —

prescribe a carbon emission band to be the neutral carbon emission band;

prescribe different amount of carbon emissions tax chargeable for vehicles of different classes, categories or descriptions or vehicles used for different purposes which have carbon emission levels exceeding the maximum limit of the neutral carbon emission band so prescribed;

provide for the method for determining the carbon emission level of any vehicle; and

for the purposes of charging any tax or granting any rebate under this section, prescribe carbon emission bands for vehicles of different classes, categories or descriptions or vehicles used for different purposes.(7) Nothing in this section shall operate so as to render lawful the keeping of a vehicle for any period, in any manner or at any place, if to do so would be unlawful apart from this section.(8) Any person who gives any incorrect information in relation to any matter affecting the amount of carbon emissions tax chargeable or any rebate that may be granted under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months, and the court shall order him to pay to the Registrar the amount of carbon emissions tax, or the tax payable under section 11(1)(a), which has been undercharged.(9) The Registrar may, in his discretion, compound any offence punishable under subsection (8) by collecting from the person reasonably suspected of having committed the offence a sum not exceeding $1,000 and the amount of the carbon emissions tax, or the tax payable under section 11(1)(a), which has been undercharged, and may before judgment stay or compound any proceedings thereunder.(10) In this section, “carbon emission band” means a range of maximum and minimum carbon emission levels prescribed for any class, category or description of vehicle or vehicle used for any purpose.”.