Singapore Budget 2021 – Others

1. Enhancement of Electric Vehicle (EV) Early Adoption Incentive (EEAI)
2. Transitional Offset Measures for Vehicles Using Petrol
3. Revision to Petrol Duty Rates

To encourage early adoption of EV, a 45% rebate on the Additional Registration Fee (ARF) for electric cars and taxis will be granted from January 2022 to December 2023 at a cap of S$20,000/-, with an ARF floor of S$0/-. In addition, road tax treatment for electric cars will be revised to be comparable to an ICE (Internal Combustion Engine Cars) equivalent.

Further details will be provided by Minister for Transport in due course.

To assist drivers on the transition to the revised petrol duty rates, a road tax rebate will be provided for petrol and petrol-hybrid vehicles at the following rates for one year from 1 August 2021 to 31 July 2022:-

1. 15% for cars, including taxis and private hire cars (PHCs);
2. 60% for motorcycles; and
3.  100% for commercial vehicles (goods vehicles and buses).

On top of the 15% road tax rebate for cars, active drivers of taxis and PHCs using petrol will receive an further Petrol Duty Rebate of S$360/- which will be paid out over 4 months in view of their higher mileage.

In addition to the 60% road tax rebate for motorcycles, individual owners of motorcycles who are using petrol and registered as at 16 February 2021, the following engine capacity will receive a further Petrol Duty Rebate below:-

Further details on the additional Petrol Duty Rebates for taxi and PHC drivers and individual motorcycle owners will be released by LTA in April 2021.

To further discourage the use of ICE, petrol duty rates will be raised as follows:-