S’pore To Lower Road Tax For EVs, Stop Diesel Car And Taxi Registrations

Transport Minister Ong Ye Kung announced during a budget debate on the government’s sustainable development plans today (March 4) that no more new diesel cars and taxis will be allowed to be registered in Singapore from 2025.

The move is in line with the country’s ambition to phase out internal combustion engine (ICE) vehicles by 2040 as part of its campaign for the adoption of electric vehicles (EVs).

The government is also demanding that new car and taxi registrations be cleaner energy models from 2030.

In Singapore, diesel vehicles mainly include commercial vehicles and buses. Ong went on to quote that 95.8% of the 140,783 utility vehicles and 99.4% of the 18,912 buses run on diesel.

He added that motor vehicles in Singapore emit around 6.4 million tonnes of carbon dioxide per year.

However, if all light vehicles were powered by electricity, “the total net carbon reduction would be around 1.5 to 2 million tonnes per year.”

Reduced road tax for electric cars

bluesg singapore electric car
Image Credit: BlueSG

Ong also announced that the road tax for consumer electric cars will be lowered from next year.

The tax should be comparable to that of equivalent models powered by combustion engines. Currently, larger consumer electric cars are still subject to a higher road tax than gasoline equivalents.

Following the revision, the road tax for electric cars in the 90kW to 230kW power band will be further lowered.

To do this, the Land Transport Authority will merge the current brackets of the road tax for electric cars from 30 kW to 90 kW and from 90 kW to 230 kW. They will then be subject to the current lower bracket road tax formula.

With this change, the annual road tax on a Tesla Model 3 will drop from S $ 2,300 to S $ 1,500.

At least 8 cities ready for electric vehicles in S’pore by 2025

During his 2021 budget speech on February 16, Deputy Prime Minister Heng Swee Keat announced that S $ 30 million would be set aside over the next five years for initiatives related to electric vehicles.

Since the 2020 budget, measures have been taken to promote the use of electric vehicles and reduce the cost gap between electric cars and cars with internal combustion engines.

For example, the floor for additional registration fees (ARF) will be lowered to zero for electric cars from January 2022 to December 2023. ARF is paid when a vehicle is registered and the rate is determined by the free market value of the vehicle.

The government also underlined its intention to expand the infrastructure for charging electric vehicles to 60,000 by the end of 2030.

Ong announced that 40,000 of the charging points will be in public car parks and the Housing Commission, and the remaining 20,000 will be placed in private premises.

The government aims to have at least eight cities ready for electric vehicles by 2025, where all parking lots will be equipped with charging stations.

These areas include Ang Mo Kio, Bedok, Choa Chu Kang, Jurong West, Punggol, Queenstown, Sembawang, and Tengah.

Meanwhile, an EV common charger grant will be set up in unearned private residences.

“We will strive to make every HDB city ready for electric vehicles by 2030,” added Ong.

Featured Image Credit: Car Sifu

This article is part of the Vulcan Post EV Knowledge Center. Discover more similar stories and follow developments in Singapore’s electric vehicle landscape here.

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Jothi Venkat

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