We all know how expensive it is to own a car in Singapore. The cost of the car on its own is already sky-high, but the costs don’t stop there. There are many other things you have to take into account when calculating the total cost of car ownership in Singapore. Some of the items that people often overlook include parking fees, road taxes and insurance premiums.
While many of these costs are dependent on a case-by-case basis – like where the owner is staying, the type of vehicle you’re driving, your personal details like age etc. – it’s important to keep these in mind when calculating your car’s cost.
While insurance premiums and parking charges are necessities, many see these taxes as an unnecessary cost. However, road and car taxes have a purpose of their own. These taxes were introduced with one goal in mind – to reduce car ownership and reduce road congestion in Singapore.
Whether they’ve been effective or not is another conversation altogether.
The most common form of road tax in Singapore is the Electronic Road Pricing (ERP) gantries found in almost every corner of the country. The idea behind the ERP system was to control the flow of cars in and out of areas that experience high traffic. But we don’t think it’s been effective.
Another (painful) form of duty is the road tax. This road tax requires drivers to renew it every six months or every year. The amount varies and is usually dependent on the vehicle’s specifications.
There are also prerequisites to fulfill before you can renew your road tax, like an inspection by the authorities. You can find more information on the prerequisites for Road Tax renewal here.
Late Road Tax Renewal
Road tax is extremely important. Without a valid road tax, it is considered an offence to drive the vehicle. As such many penalties have been imposed to deter vehicle owners from skipping the payments.
Penalties for failure to renew road tax range from late renewal fees (fines etc.) and even prosecution of the driver. In the most extreme cases, these penalties can reach fines of up to $2,000 or even driving bans.
Before you proceed to renew your Road Tax, you must ensure that your vehicle meets all the renewal prerequisites at least 3 working days before renewing your road tax.
There are four channels to renew your road tax:
Channels to Renew Road Tax
The online service is available from 6 am to midnight. You must make sure that you have everything done and ready at least three days earlier. Payment can be made through Credit or Debit Card or an Internet Banking account with Citibank, DBS/POSB, OCBC/Plus!, Standard Chartered Bank or UOB (eNETS Debit). Please ensure that your account has sufficient funds before proceeding.
You can argue that paying through an AXS machine is easier because you can find it almost anywhere, but it also means you have to actually leave your house. So… to each his own.
Just find an AXS machine near you (from 6 am to midnight) and follow the on-screen instructions to renew your road tax.
And of course, remember to get all your renewal prerequisites settled at least three days in advance.
GENERAL INTERBANK RECURRING ORDER (GIRO)
Eventhough paying for the renewal through GIRO doesn’t require you to go down in person, we think that it’s actually even more troublesome.
You’ll need to fill out an application form & submit it to the LTA at least one and a half months before the expiry of your current road tax, which means you have to be on the ball and disciplined. If you have a GIRO plan, a schedule will be sent to you a month before your road tax expires.
ROAD TAX COLLECTION CENTRES
There are many SingPost and road tax collection centers located all around Singapore that offer an alternative means for road tax renewal. Most centres are open from 830am to 6pm, however, the opening hours are not consistent throughout. Check out all the collection centres and their opening hours here. Bring along original copies of your prerequisite certificates as well as your road tax renewal notice.
And that’s all the information you need to know for the renewal of road tax in Singapore!