Road Tax Rebates for Petrol and Petrol-Hybrid Vehicles

News Releases 16 Feb 2021 road tax rebate Budget Statement

Additional Petrol Duty Rebates for active taxi and private hire car drivers 
and individual owners of smaller motorcycles

As announced by Deputy Prime Minister and Minister for Finance Heng Swee Keat in the Budget Statement 2021, the Government will set aside $113 million to provide rebates for petrol and petrol-hybrid vehicles to ease the transition towards higher petrol duties.

2          The road tax rebates will be applicable for a one-year period, from 1 August 2021 to 31 July 2022.

3          To provide further support to those who rely on their vehicles for their livelihoods, the Government will provide additional Petrol Duty Rebates for active drivers of petrol and petrol-hybrid taxis and Private Hire Cars (PHCs) and individual owners of petrol and petrol-hybrid motorcycles of up to 400cc, on top of their respective road tax rebates. Together with the road tax rebates, the additional Petrol Duty Rebates will offset the increase in petrol duties for about one year for eligible taxi and PHC drivers and individual owners of smaller motorcycles.

4          The road tax rebates and the additional Petrol Duty Rebates will be disbursed automatically to eligible recipients. There is no need to apply. LTA will release further details on the additional Petrol Duty Rebates in April 2021.

Amount of Road Tax Rebates and Additional Petrol Duty Rebates by Vehicle Type

5           The amount of rebates by vehicle type is as follows: 

Type of Vehicle Using Petrol

Amount of Rebates

Private Cars

15% road tax rebate for one year

Taxis/ PHCs

 

15% road tax rebate for one year; and

additional Petrol Duty Rebate of $360 disbursed over four consecutive months for active drivers

Motorcycles

60% road tax rebate for one year; and additional Petrol Duty Rebate of $80 for individual owners of motorcycles registered as at the close of 16 February 2021 with engine capacity of 200cc and below, and $50 for individual owners of motorcycles registered as at the close of 16 February 2021 with engine capacity of 201-400cc
 

Commercial vehicles (i.e. goods vehicles, goods-cum-passenger vehicles, and buses)

100% road tax rebate for one ye

   


6          With the 15% road tax rebate for cars, the minimum road tax payment for petrol and petrol-hybrid Off-Peak Cars (OPCs) and revised OPCs[1] will be reduced from $50 to $43 and from $70 to $60 respectively, for the period from 1 August 2021 to 31 July 2022. The road tax payable for petrol and petrol-hybrid Classic cars will be reduced from $280 to $238. With the 60% road tax rebate for motorcycles, the road tax payable for petrol and petrol-hybrid Classic motorcycles will be reduced from $280 to $112. Further details on the road tax rebates can be found in Annex A.

Implementation of Road Tax Rebates

7          As time is needed to effect the necessary system changes to implement the road tax rebates, vehicle owners will continue to receive their road tax payment notice and pay road tax based on the existing road tax rates until July 2021. LTA will inform these vehicle owners of any excess road tax paid, which will automatically be used to offset against the amount payable at the next renewal. In line with current practice, vehicle owners will be informed of the road tax payable one month before their current road tax expires.

8       For vehicle owners who have already paid road tax beyond 1 August 2021 based on the current road tax rates, the excess will be automatically offset against the amount payable at the next renewal. If the vehicle is transferred before its next road tax renewal, the excess road tax paid will be offset against the transfer fee payable, and any amount remaining will be transferred along with the vehicle to the new registered owner.


[1] OPCs currently receive an annual discount of up to $800 off the road tax payable by normal cars, subject to a minimum payment of $50 a year. Revised OPCs currently receive an annual discount of up to $500 off the road tax payable by normal cars, subject to a minimum payment of $70 a year.

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