1. As announced by the Minister for Finance in his FY2009 Budget Statement, the Government will grant a road tax rebate of 30% for buses, goods vehicles, goods-cum- passenger vehicles and taxis for one year with effect from 1 July 2009. This 30% rebate is granted as part of the relief measures for businesses during this economic downturn.

Revised Road Tax Rates

2. With the 30% rebate, the revised road tax for buses, goods vehicles and goods-cum-passenger vehicles from 1 July 2009 to 30 June 2010 are as shown in Annex A.

Taxis

3. With the 30% road tax rebate, taxis will pay a road tax of $357 per 6-month from 1 July 2009 to 30 June 2010, instead of the current $510 per 6-month. However, the 30% rebate does not apply to the special (diesel) tax imposed on taxis.

Implementation

4. With the road tax rebates, 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. If the vehicle is transferred before its next road tax renewal, any excess road tax paid will be used to offset the total transfer fees payable, and any remaining excess road tax paid will be transferred along with the vehicle to the new registered owner.

Annex A