The All Island Private Bus Owners Federation says bus fares will have to be increased due to the carbon tax imposed through the 2018 Budget proposal.
Chief Secretary Anjana Priyanjith said the carbon tax will result in the deterioration of the private bus industry.
Priyanjith said the Federation is left with no alternative other than to increase bus fares in order to pay off the carbon tax.
He added the bus industry faces a major issue as a result of the proposed carbon tax. He said the annual bus fare revision will take place in July next year claiming the increase in fares cannot be prevented.
Meanwhile the Inter Provincial Private Bus Association Chairman Sarath Vijitha Kumara said it is not suitable to impose a carbon tax on buses.
Kumara said they are not aware of what a carbon tax is claiming a tax will not prevent environmental pollution.
He charged that concessions have not been provided for the bus industry and also criticised the decision to install GPS tracking devices on buses.
The 2018 Budget tabled in Parliament last Thursday proposed a carbon tax to be imposed on all motorbikes, cars & buses.