Singapore raises road fuel taxes, adds support for EVs

Singapore has raised gasoline taxes by more than 20pc and announced new incentives for electric vehicles (EVs) in its 2021 budget.

Taxes on premium gasoline, with a retail octane number (Ron) above 97, have been increased by 23pc or S$0.15/litre (11¢/l) to S$0.79/l. Duties on 90-97 Ron gasoline rise by S$0.10/l to S$0.66/l.

The tax increases, the first for six years, take effect immediately. Rebates will be in place for a year starting from August to cushion the impact.

Singapore, a major oil refining hub, is also one of the world's most expensive places to own a vehicle as the government seeks to limit congestion on the city-state's roads and encourage the use of public transport.

The budget also introduced more tax breaks and rebates for EVs, as well as S$30mn in new funding for the sector over the next five years.

Singapore's carbon tax, which is currently set at S$5/t of greenhouse gas emissions, will be reviewed after 2023 in line with a planned increase to S$10-15/t by 2030, deputy prime minister Heng Swee Keat said.

By Kevin Foster