1. As announced by Deputy Prime Minister and Minister for Finance Lawrence Wong in the Budget 2023 Statement, there will be a revised Additional Registration Fee (ARF) structure for cars, taxis, and goods-cum-passenger vehicles. A cap of $60,000 will also be introduced for the Preferential Additional Registration Fee (PARF) rebate for cars and taxis. The measures are meant to achieve a more progressive vehicle tax system.
Revision of Additional Registration Fee (ARF) Structure
2. The revised ARF structure is as follows:
Current ARF Banding and Rates |
Revised ARF Banding and Rates |
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First $20,000 of Open Market Value (OMV) |
100% of OMV |
First $20,000 of OMV |
*100% of OMV |
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Next $30,000 of OMV (i.e. $20,001 to $50,000) |
140% of OMV |
Next $20,000 of OMV (i.e. $20,001 to $40,000) |
*140% of OMV |
|
[NEW] Next $20,000 of OMV (i.e. $40,001 to $60,000) |
190% of OMV |
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Next $30,000 of OMV (i.e. $50,001 to $80,000) |
180% of OMV |
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[NEW] Next $20,000 of OMV (i.e. $60,001 to $80,000) |
250% of OMV |
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Above $80,000 of OMV (i.e. $80,001 and above) |
220% of OMV |
[NEW] Above $80,000 of OMV (i.e. $80,001 and above) |
320% of OMV |
*no change to ARF rates
3. The revised ARF structure will apply to all new and imported used cars and goods-cum-passenger vehicles registered with Certificate of Entitlements (COEs) obtained from the second COE bidding exercise in February 2023 onwards. The second COE bidding exercise in February 2023 will take place from 20 to 22 February 2023. An example of the tiered ARF computation can be found in Annex A.
4. For cars that do not need to bid for COEs (e.g. taxis, classic cars[1]), the revised ARF structure will apply for those registered on or after 15 February 2023.
Introduction of Preferential Additional Registration Fee (PARF) Rebate Cap
5. For cars that need to bid for COEs, the PARF rebate cap of $60,000 will apply to those that are registered with COEs obtained from the second COE bidding exercise in February 2023 onwards which are subsequently deregistered within the PARF eligibility period. An example of the application of the PARF rebate cap can be found in Annex B.
6. For cars that do not need to bid for COEs (e.g. taxis), the PARF rebate cap of $60,000 will apply to those that are registered on or after 15 February 2023 which are subsequently deregistered within the PARF eligibility period.
7. The PARF cap does not apply to vehicles that are not eligible for PARF rebates, such as GPVs, classic cars, and vehicles that have been laid-up.
8. The revised ARF structure and PARF rebate cap are expected to affect the top one-third of newly-registered cars by Open Market Value. Buyers of cars with an Open Market Value of $40,000 or less, including almost all Category A cars and many 7-seater cars, will be unaffected.
Annex A: Example of tiered ARF computation
Annex B: Example of application of PARF rebate cap