The Straits Times
6 June 2008
"Road tax cut by 15% from July"
NINE months after the last cut to road tax, motorists have been given another.
Owners of cars, motorcycles, taxis and commercial vehicles will pay 15 per cent less in road tax from July 1, said the Land Transport Authority (LTA) yesterday.
The tax cuts, first announced in January, are being given to offset the extra costs that motorists have to foot with the introduction of new Electronic Road Pricing gantries in various locations this year.
Cutting back on road tax for vehicles is also part of the Government's move to shift the burden of taxation from car ownership to car usage.
Road tax was slashed last September by 8 per cent.
This latest round of tax cuts is expected to cost the Government about $110 million a year.
Motorists driving Euro-IV diesel cars, which emit less pollution than regular diesel cars, will also have their annual special tax lowered.
The special tax - what they pay on top of their road tax - now stands at four times the road tax they pay.
From July, they will pay $1.25 for each cubic centimetre of their vehicles' engine capacity, subject to a minimum annual payment of $1,250.
The owner of a 1600cc Euro-IV diesel car, for example, will pay $2,000 a year in special tax from July - 2.7 times its road tax instead of four times.
The revised tax rates will appear on tax renewal notices or Giro payment schedules issued from Monday.
Those who received notices before this date but renew their tax on or after it will pay the new lower rates, said the LTA.
Others who have renewed their tax for the period commencing July 1, paying the current higher rates, will have the excess amount offset from their next payment.
Motorists may log on to the LTA's One Motoring portal at
www.onemotoring.com.sg from Monday onwards to check the revised rates.