As announced at Budget 2020, the road tax framework for all new electric vehicles (EVs) registered from 1 January 2021 has been reviewed to better reflect current trends in vehicular efficiency and to partly account for fuel excise duties which EVs do not incur, until we are ready to impose a distance-based tax[1].
Transitional Arrangements for Private EV Owners
2 Existing owners of electric cars, or those who register electric cars before 1 January 2021[2] will enjoy the following special transitional arrangement:
a. Enjoy the technical revision to the variable component of their current road tax from 1 January 2021 onwards, which will lead to an across-the-board reduction in road tax for all electric cars; and
b. See a waiver of the additional flat component of road tax for a three-year period from 1 January 2021 to 31 December 2023. The full quantum will only be applicable from 1 January 2024.
3 Existing owners of fully electric motorcycles, light goods vehicles (LGVs) and goods-cum-passenger vehicles (GPVs) (up to 3.5 tonnes), or those who register such vehicles before 1 Jan 2021, will enjoy a waiver of the additional flat component of road tax for a three-year period from 1 January 2021 to 31 December 2023. The full quantum will only be applicable from 1 January 2024.
4 LTA will inform EV owners of the road tax payable at the next road tax renewal.
5 For existing electric car owners who have already paid the road tax for the period beyond 1 January 2021 based on the existing road tax schedule, any excess road tax paid will be used to offset the amount payable at the next road tax renewal.
6 If the vehicle is transferred to another owner before its next road tax renewal, any excess road tax paid will accrue to the new registered owner. Buyers are advised to check with the party they are buying vehicles from, on the refund of the amount of excess payment of road tax before the vehicle is transferred.
