Singapore to end green vehicle rebate in 2011

According to the Singaporean government, buyers of environmentally friendly cars in the country will continue to enjoy a 40% rebate until the end of 2011. At present, hybrid, electric and compressed natural gas (CNG) cars are accorded a 4% cut in the Additional Registration Fee (ARF), the main car tax, up until end of 2009. But even with the rebate, a car such as the hybrid Toyota Prius still costs SG$84,488 (US$55,705), versus SG$51,988 (US$34,277) for a similarly sized Toyota Corolla Altis. Next, the Government said CNG vehicles will continue to be exempted from the so-called “special tax” which applies to cars which run on fuel other than petrol. For instance, the special tax for a diesel taxi is SG$5,100 (US$3,362) a year. But from January 2012, CNG will be taxed at the pumps, like petrol. The duty will be phased in at SG$0.20 (US$0.13) per kilogram of gas, compared with SG$0.41 (US$0.27) per liter of petrol. Eventually, CNG cars will also be excluded from the green vehicle rebate scheme. (January 23, 2009)