Currently, diesel cars and taxis are levied a lump sum Special
Tax, regardless of the amount of diesel used.
“At the same time, I will permanently reduce the annual Special
Tax on diesel cars and taxis by $100 and $850 respectively. In this
way, we shift from an annual amount of tax to one which is related
to usage.”
For most drivers, the Special Tax reduction will offset the
impact of the new diesel duty.
“To help businesses adjust, I will provide 100 per cent road tax
rebate for one year, and partial road tax rebate for another two
years, for commercial diesel vehicles,” said Mr Heng.