With the release of Singapore’s Budget 2021, there are a couple of announcements that drivers need to take note of. These announcements revolve around promoting the adoption of electric vehicles (EV) and the increase in petrol duties.
Continue reading this article to learn about these new announcements.
Encouraging the Adoption of Electric Vehicles
In a move to encourage the adoption of electric vehicles, the Government will introduce incentives to narrow the price difference with internal combustion engine cars. The Government has put aside $30 million for EV-related initiatives over the next 5 years. This includes initiatives to build a more EV-friendly infrastructure in Singapore, like building more public charging points for drivers in public carparks and private premises.
The biggest of these incentives is the lowering of the Additional Registration Fee (ARF) from $5,000 to $0 for electric cars and will take place from January 2022 to December 2023. This is a significant benefit for potential EV car buyers as it lowers the cost of purchase. Additionally, when you take into account the rebates and incentives you’ll receive under the enhanced Vehicular Emissions Scheme and EV Early Adoption Incentive (EEAI), this new incentive allows buyers to maximize their savings. Combined, an EV car buyer can expect to save up to $45,000 through tax breaks!
Hike in Petrol Prices
To the dismay of many drivers in Singapore, the Singapore Budget 2021 has confirmed that petro prices will go up with immediate effect. Petrol duties for premium petrol (98 Octane and above) will be raised by 15 cents per litre to 79 cents per litre, while intermediate petrol will increase by 10 cents per litre to 66 cents per litre.
The last time petrol duties were raised was in 2015, to encourage less car usage and reduce carbon emissions from cars. This time around, the hike in prices has been attributed to encouraging Singaporeans to reduce vehicle usage as well as increase support for EV-related initiatives the Government plans to roll out. These are aligned with the country’s larger push towards a more sustainable future.
However, from 1 August 2021 till 31 July 2022, vehicles will also enjoy road tax rebates for a year. Both private cars and taxis will enjoy a 15% road tax rebate, with taxis also receiving an additional $360 in petrol duty rebate. Additionally, motorcycles will receive a 60% road tax rebate and a petrol duty rebate depending on engine capacity. This petrol duty rebate is expected to amount to a maximum of $80.
Meanwhile, goods vehicles and buses will be given a 100% tax rebate during this period.