Luxury car buyers in Singapore can expect to pay more with the introduction of a new tier structure announced by the country’s finance minister, Lawrence Wong, in his Budget 2022 statement.
Under the new tax structure, which comes into effect later this month, there will be an additional registration fee (ARF) tier applicable to all cars, including imported used cars, and goods-cum-passenger vehicles with open market values (OMV), exceeding SGD80,000 registered with Certificate of Entitlements (COEs) obtained from the second bidding exercise in February 2022 onwards.
The ARF is the main tax imposed upon registration of a vehicle in Singapore, while OMV is the approximate cost of a vehicle before taxes. Prior to the revision, the ARF banding started at 100% of OMV for the first SGD20,000 of OMV. The subsequent OMV of SGD30,000 (from SGD20,001 to SGD50,000) will be 140% of OMV, while the third tier beyond SGD50,000 (from SG50,001 and above) will be 180% of OMV.
Following the new ARF banding, the third tier of 180% of OMV now applies to the subsequent SGD30,000 of OMV (from SGD50,001 to SGD80,000) from the second tier (140% of OMV). A fourth tier has now been added, where 220% of OMV is applied above the OMV mark of SGD80,000 (SGD80,001 and above).
As an example, if a vehicle has an OMV of SGD100,000, it will now be subject to a total ARF of SGD160,000. The calculation is SGD20,000 for the first tier (100% of OMV, first SGD20,000), SGD42,000 for the second tier (140% of OMV, subsequent SGD30,000), SGD54,000 for the third tier (180% of OMV, subsequent SGD30,000) and SGD44,000 for the newly added tier (220% of OMV, final SGD20,000).
Singapore’s Land Transport Authority (LTA) says the new ARF tier serves to achieve a more progressive vehicle tax system, with examples of car models that are part of this new tier being the Porsche Cayenne, Lamborghini Urus and Bentley Continental GT – other vehicles with OMVs exceeding SGD80,000 are also affected. The first tiered ARF banding was introduced in Singapore in 2013, replacing the existing flat rate of 100% of OMV
Vehicles with higher OMVs will be taxed more heavily as a result, with a report by The Straits Times citing the Ferrari Roma as another example. The grand tourer has an OMV of around SGD311,000, and with the new ARF structure, will see its ARF rise by 17.4% to SGD624,200, from SGD531,800 previously.
The decision to introduce a new ARF tier comes after Neo Nam Heng, who is adviser to the Automobile Importer & Exporter Association, called for higher taxes for luxury cars as he believed the tiered ARF introduced in 2013 was no longer enough to level the playing field for buyers of million-dollar cars and those paying for a SGD150,000 Japanese car.
Despite the revision, Neo was not pleased with what was announced during Budget 2022. “I am a bit disappointed. The increase is very mild, and is nothing to the very rich. There should have been a straightforward surcharge instead of an increase in ARF, which owners can recover when they scrap the car,” he told The Straits Times. He added that “super luxury models” should be sold with a surcharge of up to 300% of the car’s OMV and that buyers of such cars should also pay “double the COE premium”.
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Highest car price in Asia going up even higher? If this was here we’d demand for a change in Gahmen already.
We Msians bersyukur Gaji 1,200 ringgekkk. Tengkiu gahmen BN Barang Naik, fundekk
Copy paste: “Then why when old they still need to find work cleaning tables at food court? Rakyat Malaysia at least can retire and take it easy in our golden years.”
Syukuring minimum wage dah lebih tinggi and car prices lebih rendah now with SST free compared during Penghancur Hidup days, puchimaakkk.
Because earning minimum wage can afford car at prices without sales tax, M’sian now richer than S’porean? It’s your logic that is hancur oredi lah…
Owning a car with the super high taxes in Spore…is a distant dream for many citizens there.
They have a consolation in terms of the super efficient and well planned MRT.However, when you are in your twilight years,taking a MRT is a hassle.YOu still need a car..putting up with the high taxes , home car park charges,n CBD entry charges.
Imagine getting into their super efficient and well planned MRT then got Covid because it is super efficient and well planned. Ultimate irony.
Contradiction dude..your argument doesn’t make sense.
Covid is everywhere now.Just take off your masks and walk around like Superman..covid is ever ready to strike.
YOu can get covid even in Buckingham Palace,where security is very tight.Now the Queen is covided.
Who wants to get Covid purposely? You?
Your reasoning doesn’t make any sense!
That’s why there are no lock downs. More than 99% of new daily cases are with mild or no symptoms which do not need hospitalization.
Copy paste: “ferrying the virus back and fro each day”
Thank you Copy Paste for confessing that you’re a virus carrier.
Singaporean are rich….
car prices in Singapore:
Perodua Aruz 1.5X – RM348,000.00
Perodua Myvi 1.3X – RM292,000.00
Perodua Bezza 1.3X – RM279,000.00
Honda Accord – RM620,000.00
Private motor vehicle ownership in Singapore is purposely made expensive because there is not enough space on this island nation to build roads to accommodate every vehicle if every Singaporean is able to own at least one.
Then why when old they still need to find work cleaning tables at food court? Rakyat Malaysia at least can retire and take it easy in our golden years.
Bro, S’pore pun ada warga emas who retire & take it easy in golden years, just like M’sia also got warga emas who have still have to kerja kat tempat makan ke, mini mart ke, pandu Grab ke… This depends, bila masa muda2 dulu, whether they jimat cermat, manage their finances well, or whether they boros, living beyond their means, nak hidup mewah walaupun gaji tak cukup & in the end, not enough savings sebab kena bayar hutang.
Whether in Malaysia, Singapore or the rest of the world, more & more senior citizens are now aware about the need to keep mentally & physically active by still working or doing other activities. More of them now realise that if they just take it easy & relax at home after retirement, they can become senile & less fit due to too little mental & physical exercise.
They work until they keel over and die. Who wants this kind of “active” lifestyle? Many died before they can enjoy life. When old ady it is to enjoy life, not work yourself to death.
Some of those who have to work after retirement age because they didn’t manage their finances well enough when they were younger.
If you are scared of dying because of work, go ahead & retire to enjoy life by taking it very easy whereby you can sit at home all day, watch TV, eat all sorts of delicious food, etc. Just try to avoid getting senile & other health problems due to reduced or lack of mental & physical exercise.
i think its fair. meanwhile in malaysia, luxury car buyers here no need pay tax one.