|
IN HIS article, 'Diesel car tax: Will it be axed after 2009?' (Feb 19), Mr Christopher Tan suggested that the special tax for private diesel vehicles would be further reduced or done away with when Euro-V diesel cars come on stream in Singapore, since Euro-V cars emit the same level of fine soot as petrol cars.
The special tax on private diesel cars was introduced in lieu of a volumetric excise duty, analogous to the tax per litre of petrol that petrol cars are subject to.
The revision to the new special tax of $1.25 per cubic cm of car engine capacity was aimed at removing the excessively punitive element of the previous special tax and narrows the difference in fuel consumption cost between a petrol car and a Euro-IV diesel car, taking into account the excise duty which is imposed on petrol but not on diesel.
As the fuel cost differential would remain, the introduction of Euro-V vehicles would not remove the need for a special tax, regardless of emission taxes.
Chin Sau Ho
Director (Corporate Communications & Services)
Ministry of Finance
|
