Vehicle owners to pay “pollution fee” as gov’t expects $1.8m in 2025 budget

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The minister of Finance and Treasury Manasseh Sogavare has announced that the vehicle pollution fee will come into force and will generate a new income of $1.8m in the 2025 Budget.

In June this year, Sogavare announced in Parliament that vehicle owners would be taxed $50 each year to pay for the newly introduced ‘pollution fee’ to be enforced by the government.

This week, Sogavare confirmed in parliament by including the vehicle pollution fee in its 2025 budget.

He described the vehicle pollution fee as amongst the new additional revenue measures to be introduced by his ministry and will earn the government new revenues.

Sogavare said in June that: “To improve revenues, we will be introducing what is called the pollution fee of $50.”

He said it is an annual fee to all pollution emitters.

“If you do something that attracts this tax, you will pay.  It will start with vehicles and then ocean going vessels and other engines,” the minister, said.

Sogavare revealed then that the money from the “pollution fee” will go towards the ministry of environment to help them deal with with environment hazards.

Meanwhile Sogavare also revealed that a further $2m of new government revenue will come from a proposed increase to license fees on vehicles.