1. As announced by Minister for Finance Lawrence Wong in the Budget 2022 Statement, there will be a new Additional Registration Fee (ARF) tier for cars, taxis, and goods-cum-passenger vehicles whose Open Market Value (OMV) exceeds $80,000. This is to achieve a more progressive vehicle tax system. Examples of car models in this new tier include the Porsche Cayenne, Lamborghini Urus and Bentley Continental GT.
2. The updated ARF structure is as follows:
Current ARF Banding and Rates |
New ARF Banding and Rates |
||
First $20,000 of OMV |
100% of OMV |
First $20,000 of OMV |
*100% of OMV |
Next $30,000 of OMV (i.e. $20,001 to $50,000) |
140% of OMV |
Next $30,000 of OMV (i.e. $20,001 to $50,000) |
*140% of OMV |
Above $50,000 of OMV (i.e. $50,001 and above) |
180% of OMV |
Next $30,000 of OMV (i.e. $50,001 to $80,000) |
*180% of OMV |
[NEW] Above $80,000 of OMV (i.e. $80,001 and above) |
220% of OMV |
||
*no change to ARF rates
3. The new ARF structure will apply to all cars, including imported used cars, and goods-cum-passenger vehicles registered with Certificate of Entitlements (COEs) obtained from the second bidding exercise in February 2022 onwards. The second COE bidding exercise in February 2022 will take place from 21 to 23 February 2022. An example of the tiered ARF computation can be found in Annex A.
4. For taxis, classic cars[1] and COE-exempted cars, the new ARF structure will apply for those registered on or after 19 February 2022.
