Land Transport Authority

Revision In Vehicle Taxes


News Releases
30 Jan 2008

Reduction in Road Tax by 15%
Reduction in Additional Registration Fee

    As announced by the Minister for Transport, Mr Raymond Lim, the Government will reduce the road tax for cars, motorcycles, taxis and commercial vehicles by 15%.  The Additional Registration Fee (ARF) for cars, taxis and goods-cum-passenger vehicles (GPVs) will also be reduced.

2.  The reduction is part of the package of measures to manage road usage, which takes effect from July 2008, and is in line with Government's approach to gradually reduce the tax burden on vehicle ownership in tandem with the shift towards more usage measures to manage congestion on the roads.

Reduction in Road Tax

3.  The road tax for cars, motorcycles, taxis, buses and goods vehicles will be lowered by 15% with effect from 1st July 2008

Cars

4.  The road tax for cars will be reduced by 15% from 1st July 2008 as shown in Table 1 below:

Engine Capacity (EC) in cc

Current 6-Monthly Road Tax Formulae (from 1st September 2007)

New 6-Monthly Road Tax Formulae (from 1st July 2008)

EC < 600 $200 x 0.92 $200 x 0.782
600 < EC < 1,000 [$200 + $0.125(EC-600)] x 0.92 [$200 + $0.125(EC-600)] x 0.782
1,000 < EC < 1,600 [$250 + $0.375(EC-1000)] x 0.92 [$250 + $0.375(EC-1000)] x 0.782
1,600 < EC < 3,000 [$475 + $0.75(EC-1,600)] x 0.92 [$475 + $0.75(EC-1,600)] x 0.782
EC > 3,000 [$1,525 +$1(EC-3,000)] x 0.92 [$1,525 + $1(EC-3,000)] x 0.782

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

5.  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

6.  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 1st 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.

Current 6-Monthly Road Tax Formulae based on Max Motor Power Rating for Electric and Hybrid Cars

New 6-Monthly Road Tax Formulae based on Max Motor Power Rating for Electric and Hybrid Cars (from 1st July 2008)

Power Rating, PR (kW)

Road Tax

Power Rating, PR (kW)

Road Tax

PR ≤ 7.5 $200 x 0.92 PR ≤ 7.5 $200 x 0.782
7.5 < PR ≤ 27.5 [$200 + $2.5(PR-7.5)] x 0.92 7.5 < PR ≤ 32.5 [$200 + 2(PR-7.5)] x 0.782
27.5 < PR ≤ 57.5 [$250 + $7.5(PR-27.5)] x 0.92 32.5 < PR ≤ 70 [$250 + 6(PR-32.5)] x 0.782
57.5 < PR ≤ 127.5 [$475 + $15(PR-57.5)] x 0.92 70 < PR ≤ 157.5 [$475+ 12(PR-70)] x 0.782
PR > 127.5 [$1,525 +$20(PR-127.5)] x 0.92 PR > 157.5 [$1,525 + 16(PR- 157.5)] x 0.782

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

Motorcycles

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

Engine Capacity (EC) in cc

Current 6-Monthly Road Tax Formula (from 1st September 2007)

New 6-Monthy Road Tax Formula for Motorcycles (from 1st July 2008)

EC < 200

$40 x 0.92

$40 x 0.782

200 < EC < 1,000

[$40+ $0.15(EC  200)] x 0.92

[$40 + $0.15(EC  200)] x 0.782

EC > 1,000

[$160+$0.3(EC  1,000)]x 0.92

[$160+$0.3(EC  1,000)]x 0.782

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

Taxis

8.  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)

9.  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)

10.  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 1st July 2008 is as shown in Table 4 below.

PCU Rating

Max Laden Weight (metric tons)

Current 6-Monthly Road Tax (from 1st September 2007)

New 6-Monthly Road Tax for GPVs (from 1st July 2008)

Diesel

Petrol

Diesel

Petrol

1

mlw < 3.5mt

$437

$350

$372

$298

1.5

mlw > 3.5mt

$572

$458

$487

$390

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

 

Implementation of Road Tax Reduction

11.  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)

12.  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.

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

14.  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 1st Mar 2008.

15.  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.