Singapore to tax luxury cars up to 100% more – BMW 7 Series price up RM142k, Aston DBX up RM636k! –

Luxury cars in Singapore are set to become even more expensive than they already are, due to the 320% Additional Registration Fee (ARF) that will be imposed on vehicles with an open market value (OMV) of S$80,000 (RM265,041) and above, reported SG Car Mart.

The ARF rates have been revised to take effect the upcoming COE bidding round for the country that is on February 22, and the revised ARF pricing structure will also affect mid- to upper-tier luxury cars, which are those with OMVs of S$40,001 to S$80,000 (RM132,593 to RM265,041), according to the publication.

At the high end of the scale, models such as the Aston Martin DBX707 will sustain a spike in ARF of S$192,000 (RM636,815), on top of its OMV of around S$252,000 (RM835,773).

The mid- to upper-luxury segemnt of vehicles, which were previously unaffected by the ARF scheme, will now see their ARF increased; the Mercedes-Benz E 200 Exclusive (OMV S$55,314 or RM183,386) will see an ARF hike of nearly S$6,000 (RM19,892). For EVs such as the Tesla Model 3 AWD Performance (OMV S$73,984, or RM245,277) is expected to see an ARF hike of almost S$16,000 (RM53,044).

Moving up the luxury ladder, the Audi A8 (OMV S$79,392, or RM263,215) gets an ARF hike of almost S$20,000 (RM66,307), while the BMW 7 Series (OMV S$103,000, or RM341,485) gets an ARF hike of more than S$40,000 (RM132,615).

Mass-market models continue to be unchanged in the pricing scheme, for models such as the Toyota Corolla (OMV of S$21,508 or RM71,325), Hyundai Avante (OMV of S$21,741 or RM72,097), Honda CR-V (OMV of S$34,723 or RM115,160), and the BMW 2 Series Gran Coupe (OMV of 33,581 or RM111,373).

Newly affected by changes to the ARF scheme are mid- to upper luxury models such as the Mercedes-Benz E-Class and Tesla Model 3

Of course, the OMV is only part of the story of vehicle pricing, and for Singapore, the other significant component in a vehicle’s price tag is the COE or certificate of entitlement, which is a sum paid to the city-state’s land transport authority in order to register a car for road use, and is essentially a quota system to regulate the number of vehicle’s on the country’s roads.

The latest COE prices, according to SG Car Mart as of the last round of bidding earlier this month saw a quota premium of S$86,000 (RM285,197) for Category A vehicles, which are cars under 1,600 cc of displacement, 130 bhp or engine output or 110 kW for EVs.

Category B saw a quota premium of S$105,524 (RM349,950) for cars above 1,600 cc in engine displacement, 130 bhp in engine output or 110 kW for EVs. In the top COE tier, Category E or the open category, the quota premium is currently S$105,002 (RM348,219).

These adjustments come as part of the Singapore government’s wider efforts toward implementing a “progressive vehicle tax system” for the country’s car market, according to SG Car Mart.

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