CAP FOR PREFERENTIAL ADDITIONAL REGISTRATION FEE REBATES
The Government will also cap the preferential ARF (PARF) rebates at S$60,000 to “avoid providing excessive rebates to more expensive cars when they are deregistered”, added Mr Wong.
PARF rebates are currently sized as a percentage of the payable ARF.
For example, a vehicle with an OMV of S$100,000 will pay S$200,000 in ARF under the revised structure. If it is deregistered between nine and 10 years of age, it will qualify for a rebate of 50 per cent of ARF paid, which works out to S$100,000.
Under the revised PARF cap, the vehicle will now only qualify for a rebate of S$60,000.
The new ARF structure and the preferential ARF cap will apply to all cars registered with a Certificate of Entitlement (COE) obtained from the next round of COE bidding in February 2023, said LTA.
For cars that do not need to bid for COEs, such as taxis, the revised ARF structure will apply for those registered on or after Feb 15, 2023, the authority added.
For these same cars, the preferential ARF cap will apply to those that are registered on or after Feb 15, 2023, which are subsequently deregistered within the preferential ARF eligibility period.
“These changes are expected to affect the top one-third of cars by OMV,” said Mr Wong.
“The ARF change is expected to generate about S$200 million in additional revenue per year, but the actual amount will depend on the state of the vehicle markert.”
Buyers of cars with an OMV of S$40,000 or less, including almost all Category A cars and many 7-seater cars, will be unaffected, added LTA.