New Additional Registration Fee (ARF) Tier Introduced

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Thinking of rewarding yourself with a brand new luxury car? Well, you may want to strongly reconsider now that a new Additional Registration Fee (ARF) tier has been introduced in this year’s Budget.

Finance Minister Lawrence Wong announced this revised ARF structure in Parliament earlier today (18 Feb 2022), explaining that it would ensure a more progressive vehicle tax system.

The new banding, targeted at all vehicles with an Open Market Value (OMV) above SGD $80,000, will impose a 220% fee against the OMV. The existing tiers remain unchanged.

But What Does This All Mean?

It can be hard to grasp the exact impact of this new ARF tier. To illustrate this, we will use Mercedes-Benz’s S450L as an example.

It has an OMV of S$107,471. With the new ARF tier in place, the fee breakdown will be as follows:

With the new tier in place, would-be buyers of higher-end vehicles can expect an exponential increase in Additional Registration Fees, which may far surpass the actual OMV of the car.


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