ADDITIONAL FEE FOR TRANSFER OF USED CARS

ADDITIONAL FEE FOR TRANSFER OF USED CARS

35.

Mr Teo Siong Seng asked the Minister for Transport (a) what is the rationale for charging an additional fee of 2% based on the assessed value for registering the transfer of a used car sold in the resale market; and (b) whether such an additional fee can be waived or reduced in view of the fact that the registration fee for a new car is only $140.

Mr Raymond Lim Siang Keat: A transfer fee is levied when a used vehicle is transferred from one owner to another. It comprises two components – a small administrative fee and a tax. The administrative fee is $3 for motorcycles and $10 for all other vehicles.

The tax, which is also referred to as an Additional Transfer Fee, is set at 2% of the assessed value of the vehicle and is part of our national taxation framework. It goes into the Government's Consolidated Fund, which funds the various Government programmes for the benefit of all Singaporeans.

A review on the Additional Transfer Fee is currently ongoing and the recommendations will be announced when ready.

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