What is the new additional registration fee for luxury cars in Singapore?

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The new additional registration fee for luxury cars in Singapore is 220 per cent on the portion of the car’s open market value exceeding S$80,000.

A new tiered additional registration fee (ARF) will be implemented for luxury cars in Singapore. This fee will be applied at a rate of 220 per cent specifically to the portion of a car's open market value that surpasses S$80,000. This measure is expected to significantly increase the cost of high-end vehicles.
Application of the Additional Registration Fee

The ARF is structured to target the excess value of a luxury car. For instance, if a car has an open market value of S$100,000, the S$20,000 that exceeds the S$80,000 threshold will be subject to the 220 per cent tax. This progressive taxation on higher value segments aims to curb the proliferation of extremely expensive cars.
Rationale Behind the Fee Increase

The introduction of this higher fee is partly a response to the increasing visibility of luxury cars on Singapore's roads, which can be perceived as ostentatious by the general population. Many Singaporeans face challenges in affording any vehicle, making the conspicuous display of extreme wealth through luxury cars a sensitive issue. The government aims to encourage a more subdued display of wealth among the ultra-wealthy.
Broader Budgetary Context

This measure is part of a wider shift in Singapore's Budget 2022, which shows an increased focus on taxing wealth. The government is implementing several measures to increase the tax burden on the wealthiest segment of society. These include adjustments to income tax rates for high earners and increased taxes on high-end properties, with the intention of using the generated funds to support lower-income groups and under-privileged communities.

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What is the new additional registration fee for luxury cars in Singapore?

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