Budget debate: Road tax for mass-market electric cars in S’pore to be lowered from next year
SINGAPORE - Road tax for mass-market electric cars will be lowered to be on par with equivalent models powered by combustion engines from next year, removing yet another hurdle to adoption of these cleaner vehicles. Speaking in Parliament on Thursday (March 4), Transport Minister Ong Ye Kung noted that road tax for electric cars had already been lowered in January this year - by as much as 40 per cent. But the larger mass-market electric models still incur more road tax than petrol equivalents. To address this, Mr Ong said road taxes for e-cars in the 90kW to 230kW power band will be adjusted further. To do so, the Land Transport Authority (LTA) - which takes over the Energy Market Authority as regulator of electric vehicles (EV) charging standards - will merge the current electric car road tax bands of 30kW to 90kW and 90kW to 230kW, and subject them to the current road tax formula of the lower band. "That way, we bring down the road taxes of electric cars in the upper band," Mr Ong said, noting that with the change, a Hyundai Kona Electric will see its annual road tax fall from about $1,400 to $1,100, and that of a Tesla Model 3 will drop from $2,300 to $1,500. "This will make th...
