The Government will increase petrol duty rates by 15 cents per litre for premium petrol, and 10 cents per litre for intermediate petrol, effective from Tuesday (16 Feb).
In his Budget 2021 speech earlier today, Deputy Prime Minister and Finance Minister Heng Swee Keat noted that Singapore has seen “positive outcomes” from the restructuring of diesel taxes in 2017 and 2019 to move towards a usage-based tax system.
“Usage-based tax has helped shape consumer behaviour towards a more efficient use of fuel or environmentally friendly alternatives,” he said.
Mr Heng also announced that all motorcycles using petrol will receive a 60 per cent road tax rebate for a year.
Additionally, individual owners of smaller motorcycles of up to 400cc will receive S$50 or S$80 in cash depending on their engine capacity.
Active taxi and private car hire drivers using petrol and petrol hybrid vehicles will receive a petrol duty rebates of S$360 given out over four months, on top of a one-year road tax rebate of 15 per cent given to all taxis and private hire cars using petrol.
Good vehicles and buses using petrol will receive a one-year tax rebate of 100 per cent, while cars using petrol will receive a one-year road tax rebate of 15 per cent.
The Minister stated that all road tax rebates will take effect from 1 August.
He hinted that additional petrol duty rebates for motorcycles, taxis, and private hire cars will be introduced by the middle of this year, adding that the Land Transport Authority (LTA) will release more details in April.
This means that all road tax measures will offset about a year of petrol duty increases for taxis and motorcycles, and about two years for commercial vehicles.
Mr Heng went on to say that most of the expected revenue increase from the petrol duty changes in the coming year will be given out through the offsets, which estimated to cost S$113 million.
“Climate change is real and urgent. We must act now. Behavioural changes take time,” he stressed.
Mr Heng also highlighted that the Government will spend over S$60 billion within this decade to expand and renew the city-state’s rail network.
“Overall, these measures will work towards reshaping our transport footprint, towards cleaner transport,” he remarked.