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Starting from Jan 1, buyers will enjoy tax rebates of up to $20,000 when they opt for cars with low carbon emission.

08 Mar 2012 | Local News : Singapore

A new vehicle tax system is on its way : starting 1 January 2013, car buyers who opt for vehicles with lesser carbon emission will enjoy up to $20,000 off, which can be used to offset the Additional Registration Fee (ARF). Full implementation will take place six months later when the second phrase commences 1 July, where additional surcharges of up to $20,000 will be levied on cars with high carbon emission.

Commenting on the new taxation system, Transport Minister Lui Teck Yew explained the two-stage roll out will allow the industry, as well as consumers, more time to adjust. He added that If the buying pattern of the public stays constant with last year, majority of the car buyers will be unaffected by the new scheme: based on last year’s figures, 60% of the car registered falls into the “neutral” category, where there is no rebate or surcharge. Around 20% of them falls into the “clean” segment with less than 160g/km emitted will be entitled for the rebate. In the scheme however, diesel cars will not enjoy the carbon emission rebate, but will too be penalised if they exceed the 210g/km mark.

The new system will be due for review at the end of 2014. Other categories, such as commercial vehicles and motorcycles, will remain in the current scheme for two more years to allow the Government to better study on the adoption of green vehicles.

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