Vehicles can be categorized in numerous ways. For example, a government may establish a vehicle classification system for determining a tax amount. Singapore uses the Vehicle Quota System and vehicle ownership tax to moderate the growth of the vehicle population at a rate that can be supported by the road network. These include the Registration Fee, Additional Registration Fee, Preferential Additional Registration Fee, Excise Duty, Road Tax and Special Tax.
1) A Registration Fee of S$140 covers the costs of registering a vehicle in Singapore. It is collected upon registration of the vehicle.
2) The Preferential Additional Registration Fee (PARF) benefit is granted to a vehicle owner who de-registers his car by scrap or export before the car reaches 10 years old. This ensures a relatively young and roadworthy fleet for smooth flowing traffic.
3) Excise Duty is a tax imposed and collected by Singapore Customs. Like the ARF, the Excise Duty is also calculated based on a percentage of the OMV of the vehicle.
4) All vehicle owners must have a valid vehicle licence (i.e. Road Tax) for their vehicles before these vehicles can be used on the roads. Most vehicles’ Road Taxes are renewable on a six-month or yearly basis. Vehicle owners must fulfil the prerequisites (e.g. obtain motor insurance coverage for the new licensing period, pass the periodic vehicle inspection, etc.) prior to the renewal of the vehicle licences.
5) A Special Tax is levied on non-petrol propellant vehicles to make up for the absence of a fuel duty. The Special Tax is payable in addition to the Road Tax of the vehicle. The quantum of the Special Tax for diesel cars takes into account the particulate matter (PM) emissions. A petrol duty is imposed to encourage fuel conservation and discourage excessive use of vehicles that may contribute to congestion and pollution. However, there is currently no equivalent duty imposed on diesel.