THE road tax for cars, motorcycles and dual-purpose commercial vehicles will be reduced by 8 per cent from Sept 1 as announced earlier this year during the Budget Statement.

From next week, road tax renewal notices sent to motorists will show the new reduced rates.

This means motorists paying their road tax from next week will pay only the new reduced rate, regardless of the amount shown on earlier notices sent to them.

Vehicle owners who have have already paid their road tax, for the assessment period beginning Sept 1 based on existing rates before July 9, will have the
excess amount automatically offset from their next road tax bill.
Similarly, excess road tax paid on a vehicle that is transferred before its next renewal will be used to offset the total transfer fees for the vehicle.

From Monday, motorists will be able to check the rates they will have to pay on One.Motoring, the Land Transport Authority?s online portal at www.onemotoring.com.sg

The lower road tax rates are part of the Government?s efforts to gradually balance the cost of owning a car against usage costs, the LTA said in a
statement.

This means that, over time, it will cost less to own a car but the cost of using it will go up, as Electronic Road Pricing charges and other costs rise.