Only 27 models, out of the 197 offered on the local market will not be affected by the new tiered ARF tax scheme. This is based on data from Land Transport Authority (LTA).

The new tax scheme will see that cars with an Open Market Value (OMV) of more than $20,000 attract additional tax. This results in luxury cars attracting much heftier taxes than normal 'bread and butter' cars. For instance, a Toyota Camry with an OMV of $23,519 will incur $1,408 more tax, compared to a $8,526 tax increment for a BMW 520i with an OMV value of $41,316.

However, the new tax scheme is not the heaviest the industry has seen. Between 1983 to 1990, a flat 175 percent ARF applied to all cars.

The new scheme may also see a reversal of consumer preference towards continental cars, as Japanese and Korea makes are comparatively more affordable now.