Singapore’s Green Vehicle Rebate scheme will be extended to imported used green vehicles, thus allowing used petrol-electric hybrids to enjoy the same lower registration taxes as new hybrids.
Finance Minister Tharman Shanmugaratnam said in his Budget Speech 2010 yesterday that he will “expand the scope of the Green Vehicle Rebate scheme to include imported used green vehicles”.
This means used hybrid cars imported into Singapore will have to pay tax equivalent to only 40 per cent of OMV (open market value). The usual ARF (additional registration fee) payable for new or used petrol-engined cars is 100 per cent of OMV. But the used car surcharge of $10,000 will continue to apply to used hybrids.
Yesterday’s announcement is the result of a proposal made to various government agencies by the Automobile Importer & Exporter Association (AIEA) last October.
“We are very happy with the government’s positive response to our proposal,” said AIEA vice-president Jerry Low. “We believe that if consumers are being encouraged to buy new hybrids, we should not discriminate against used hybrids.”
But as to whether he thought this meant importers will start bringing in more used hybrids now, he said it depends on demand.
“The market will react accordingly,” said Mr Low. “If there is demand, there will be supply.”
He said the most important thing is that there is now a level playing field.
In yesterday’s Budget Speech, Mr Tharman also touched on further incentives for clean technologies.
He said: “To encourage test-bedding of clean technologies, I will enhance the Transport Technology Innovation Development Scheme (Tides) for new green vehicles.”
Tides is a scheme used to register expensive eco-friendly cars like the Mitsubishi iMiEV pure electric vehicle without registration fees or COE for four years. An ordinary Mitsubishi i with a 660cc petrol engine has an OMV of roughly $14,000. But the electric version – the iMiEV – has an OMV of almost $90,000 because of its sophisticated battery technology.
Based on the Green Vehicle Rebate, the iMiEV would cost $177,380. But with Tides approval, the list price of the iMiEV is only $90,000. That excludes an annual administrative fee of $1,600 to the government.
Over the next three years, 50 units of the iMiEV will take part in a $20 million test-bed project to test the electric vehicle infrastructure. The project will include the setting up of a pilot network of charging stations.
