24 Feb 2015
Highlights of the Singapore Budget 2015 and the Motoring Landscape
Taking on the theme “Building Our Future, Strengthening Social Security”, the Singapore Budget 2015, which was delivered by Deputy Prime Minister Tharman Shanmugaratnam, focuses on fundamental shifts in policy to provide Singaporeans greater assurance, opportunities and a better home for all. Below are highlights of the Budget by the Government for the motoring landscape in Singapore.
1) Carbon Emissions-based Vehicle Scheme (CEVS)
The CEVS was first introduced in 2013 to encourage purchase of more environmentally-friendly cars. The CEVS was deemed to be effective and will be extended from 01 July 2015 to 30 June 2017 with enhancements to the mechanics of the scheme. Its intention is to further encourage more environmentally-friendly cars on our roads.
CEVS bandings to have lower and stricter CO2 emission standards, while rebates and surcharges for the extreme bands will be increased by $10,000 to $30,000.
2) Early Turnover Scheme (ETS)
The ETS which is intended to offer incentives for owners of older commercial vehicles that are typically less environmentally-friendly is set to be enhanced. The enhancements are expected to take into effect from August 2015. However, more details of the enhanced scheme will only be provided through an upcoming Committee of Supply (COS) session.
3) Petrol Duty
Duty for petrol will be revised upwards with immediate effect. Petrol duty was mentioned to have remained unchanged since 2003 and the increase was meant to encourage less vehicle usage and reduce carbon emissions.
Premium grade petrol (i.e. Shell V-Power/98, Esso Synergy 8000) to be increased by $0.20 per litre (New Duty Rate: $0.64 per lire)
Intermediate grade petrol (i.e. Shell 95/92, Esso Synergy 5000/2000) to be increased by $0.15 per litre (New Duty Rate: $0.56 per litre)
4) Road Tax Rebate
To ease the transition of increased petrol duty for vehicle owners, a one-year road tax rebate (effective 01 August 2015) is granted for the following types of vehicles:
- 20% for petrol-driven cars
- 60% for petrol-driven motorcycles
- 100% for petrol-driven commercial vehicles
*Source : The Singapore Budget