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Table 1: New Road Tax Rates for Cars (From 1^st July 2008)

The road tax of Off-Peak Cars (OPCs) will be reduced by 15%, subject to a minimum payment of $50 a year.  OPCs are currently given an annual road tax discount of $800 from that payable by normal cars, subject to a minimum payment of $50 a year.  There is no change to the road tax discount given to OPCs.

Electric and Hybrid Cars

The road tax for electric cars and hybrid cars will similarly be reduced by 15%.  LTA has also reviewed and updated the correlation between the power output from the electric motors of cars with the engine capacity of conventional cars, taking into account recent advances in vehicle technologies, resulting in electric motors attracting a lower road tax rate after the review.  Therefore, the new road tax structure for electric and hybrid cars from 1^st July 2008 is as shown in Table 2 below.  For hybrid cars, the road tax payable continues to be based on either the engine capacity of the conventional engine or the maximum motor power rating of the electric motor, whichever is higher.

Table 2: New Road Tax Formulae for Electric/Hybrid Cars (From 1^st July 2008)

Motorcycles

The road tax of motorcycles will be reduced by 15%. Their road tax rates from 1st July 2008 are shown in Table 3 below:

Table 3: New Road Tax Rates for Motorcycles (From 1^st July 2008) 2008)

Taxis

The road tax of taxis will be reduced by 15%.  With the reduction, taxis will pay road tax at a flat rate of $1,020 per annum, down from $1,200 currently, regardless of engine capacity.

Commercial Vehicles (Buses and Goods Vehicles)

The road tax for buses and goods vehicles will be reduced by 15%.  The new tax rates are shown in Annex A (see Table 5 and 6).  Petrol-driven and green commercial vehicles (e.g. vehicles that run on CNG) will continue to have a 20% discount off the road tax of their diesel-driven counterparts as they are less pollutive.

Goods cum Passenger Vehicles (GPVs)

GPVs are dual-purpose vehicles, i.e. they can be used for social, domestic or business purposes, to carry goods as well as passengers. The road tax of GPVs will be reduced by 15%. The new road tax for GPVs from 1^st July 2008 is as shown in Table 4 below.

Table 4: New Road Tax Rates for GPVs (From 1st July 2008) Implementation of Road Tax Reduction

With the road tax reduction, there may be cases of overpayment by owners who have paid their road tax based on the old road tax rates. The excess road tax paid would automatically be used to offset the road tax payable at the next renewal, or the additional transfer fees payable upon transfer of the vehicle, whichever is earlier.

Reduction in Additional Registration Fees (ARF)

The ARF for cars, taxis and GPVs will be reduced from 110% of Open Market Value (OMV) to 100% of OMV from March 2008.  This will reduce the fixed up-front cost of car ownership.

The ARF for other goods vehicles, buses and motorcycles will remain unchanged.

The new ARF rate of 100% of OMV will apply to new cars, taxis and GPVs registered with COEs successfully obtained from the March 2008 first tender exercise onwards. For replacement taxis and COE-exempted vehicles, the new ARF rate will apply from 1^st Mar 2008.

The new ARF rate will not apply to:

(a)        Existing cars, taxis and GPVs;

(b)       New cars, taxis and GPVs registered with COEs obtained prior to the March 2008 first tender exercise; and

(c)       Imported used cars and GPVs registered with COEs obtained prior to the March 2008 first tender exercise.

Source: www.lta.gov.sg News Release 30 Jan 2008

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