Singapore adopts a package of vehicle ownership tax measures to moderate the growth of our vehicle population at a rate that can be supported by our road network. These include the Registration Fee, Additional Registration Fee, Preferential Additional Registration Fee, Excise Duty, Road Tax and Special Tax.
Registration Fee
A Registration Fee of $140 covers the costs of registering a vehicle in Singapore and it is collected upon registration of the vehicle.
Additional Registration Fee
The Additional Registration Fee (ARF) is a tax imposed upon registration of a vehicle. It is calculated based on a percentage of the Open Market Value (OMV) of the vehicle.
Preferential Additional Registration Fee
The Preferential Additional Registration Fee (PARF) benefit was introduced to encourage motorists to scrap or export their cars before the end of the 10th year. This ensures a relatively young and roadworthy fleet for smooth flowing traffic. Motorists can use the PARF benefit to offset the costs of registering a new car or encash the PARF benefit.
Excise Duty
Excise Duty is a tax imposed and collected by Singapore Customs. Like the ARF, the excise duty is also calculated based on a percentage of the OMV of the vehicle.
Road Tax
All vehicle owners must have a valid vehicle licence (i.e. Road Tax) for their vehicles before the vehicles can be used on the roads. Vehicle licences are issued to owners upon renewal for either a 6-month or 12-month licensing period. Vehicle owners must fulfil the prerequisites (e.g. obtain motor insurance coverage for the new licensing period, pass the periodic vehicle inspection, etc.) prior to the renewal of the vehicle licences.
Special Tax
A petrol duty is imposed to encourage fuel conservation and discourage excessive use of vehicles that may contribute to congestion and pollution. However, there is currently no equivalent duty imposed on diesel. Hence, a Special Tax is levied on diesel vehicles to make up for the absence of a fuel duty. The Special Tax is payable in addition to the Road Tax of the vehicle.
The quantum of the Special Tax for diesel cars takes into account the higher particulate matter (PM) emissions of diesel vehicles. The Special Tax for a non-Euro IV compliant diesel car is 6 times its Road Tax. In recognition of improved emission standards of Euro-IV diesel cars, the Special Tax rate for these diesel cars was reduced from four times the road tax to $1.25 per cc with effect from 1 July 2008. The Special Tax structure seeks to narrow the difference in the cost of fuel consumption (including petrol duty) between a Euro-IV diesel car and a petrol car.
