Channel NewsAsia - Thursday, July 24

CNG—car drivers may have to pay additional tax from 2010

SINGAPORE : A lack of refuelling stations is not the only concern worrying drivers who are considering switching to Compressed Natural Gas (CNG). Drivers of CNG vehicles may have to pay an additional tax from 2010.

Sales Manager Isaac Tan drives 35,000 kilometres a year — much of it for his job.

Earlier this year, he bought a new car and planned to convert it for CNG use, to save fuel costs and the environment.

But he changed his mind at the last minute, because of costs — even though buyers of hybrid and CNG vehicles benefit from the Green Vehicle Rebate. This gives the buyer a 40 per cent discount on the car’s Open Market Value until 31 December 2009.

Mr Tan said, "I was surfing... the LTA website, ONE.MOTORING, and I realised there is this Special Tax involved on CNG. Right now, the government has waived it until 31 December 2009, but beyond that it’s unclear."

Recovering fuel duty and discouraging the use of polluting vehicles are reasons for the Special Tax.

Currently drivers of petrol vehicles pay duty of 41 cents per litre of intermediate grade petrol every time they top up their tanks.

So the owner of a 1,500cc petrol car who drives the average 21,000 kilometres a year spends about S$3,550 on petrol, of which about S$660 is petrol duty.

But duty is not charged on diesel or CNG at the filling station.

And diesel engines create more pollution. For example, the latest EURO IV diesel engines create five times more of the pollutant called PM2.5 than a petrol—driven car.

Special tax for EURO IV diesel vehicles is pegged at S$1.25 per engine cc. So the owner of a 1,600cc diesel vehicle pays S$2,000 a year in Special Tax.

The owner of a 1,600cc diesel vehicle who drives the average 21,000 kilometres a year would spend about S$1,900 a year on diesel.

But CNG vehicles produce cleaner emissions than petrol vehicles, so are exempt from Special Tax until 31 December 2009.

The Land Transport Authority (LTA) has not yet decided whether to extend the exemption. But it said if Special Tax is imposed on CNG cars, it will not necessarily be the same as that on Diesel IV vehicles.

Mr Tan said: "The way the government is setting the policies — or not setting the policies, rather — is not helping the public. And in fact, if they really want to encourage the public to go to greener vehicles, then they should set the policies right in the first place."

LTA said it will announce its decision on the Special Tax for CNG cars in due course. So for now, drivers considering a CNG vehicle will have to live with the uncertainty of higher taxes in future or wait until a decision is made. — CNA/ms

-sry double post-

Sometimes I don't know if this CNG thing is hype or not. Honestly if one is that concerned about fuel saving, then downgrade or change your driving habit. Or get a hybrid. Or if one is that very concerned about rising fuel prices, then take public transport. No one is forced to drive, its a choice.

 

As for CNG, sometimes I really wonder is it really worth it at the  moment. Sure the OMV 40% cut is good, but for cars with very much lower OMVs, the installation costs is even more than the rebate. And with only 2 stations in Jurong and Mandai, does it seriously even make sense if you live in the east? Sure unless you work/live near those areas, then it will make some economical sense but I dont believe that EVERYONE who signs up for CNG even actually uses the CNG tank. Even so, it does not make any economical sense at all, if you live/work anywhere else other than Jurong and Mandai, to use PETROL to travel to the CNG refuelling stations to top up your CNG tank.

Hmm... switching now may be not advisable as seen... Cos there is no certainity that the tax will not be higher than normal fuel...

Originally posted by nightsky87:

Sometimes I don't know if this CNG thing is hype or not. Honestly if one is that concerned about fuel saving, then downgrade or change your driving habit. Or get a hybrid. Or if one is that very concerned about rising fuel prices, then take public transport. No one is forced to drive, its a choice.

 

As for CNG, sometimes I really wonder is it really worth it at the  moment. Sure the OMV 40% cut is good, but for cars with very much lower OMVs, the installation costs is even more than the rebate. And with only 2 stations in Jurong and Mandai, does it seriously even make sense if you live in the east? Sure unless you work/live near those areas, then it will make some economical sense but I dont believe that EVERYONE who signs up for CNG even actually uses the CNG tank. Even so, it does not make any economical sense at all, if you live/work anywhere else other than Jurong and Mandai, to use PETROL to travel to the CNG refuelling stations to top up your CNG thank.

talk easy.....do you know those sales personal are force to drive?? & lot of them, being a sales man is their only income. can you ask them to give up driver?

Saw that coming.

Recovering fuel duty and discouraging the use of polluting vehicles are reasons for the Special Tax.

die die wanna get back the fuel duty money. tsk tsk.

 

seriously do some calculations..

For me, considered not heavy user on cars.

Let's say i will save using CNG 50/week

1month 200bucks

1year 2400

Installing the tank require 4k+ (erm, not new car)

I need 2years + to "claim" back what I paid for.

 

So for people like me, I dont like it because

>It take up my boot's space quite alot...

>1lit of CNG = 1lit of Petrol (same dist?) I dont trust CNG can run the same..

>Need to purposely go to the station to top up(even i am jurong, i am lazy)

>Prices of CNG may increase, and i may need longer then 2years to "claim back"

>Taxes of CNG will increase (in year 2010... yet to be confirmed)

Must take note petrol prices going down, but CNG prices going up

 

CNG now about 1.73, while ron-95 after discount is about 2.02.  save 50/week = 2 years break even? I think you'll take much longer to break even, especially as you mention you're not high mileage as well...

CNG not only save money saves the environment too

 

 

Originally posted by alwaysdisturbed:

Recovering fuel duty and discouraging the use of polluting vehicles are reasons for the Special Tax.

die die wanna get back the fuel duty money. tsk tsk.

 

If Special Tax is there to discourage the usage of polluting vehicles, then why is Special Tax being applied to CNG cars?

 

When the time comes, i think the Special Tax would still be waived la..

Originally posted by mamamamama:

 

 

When the time comes, i think the Special Tax would still be waived la..

u dont seem to know the sg govt very well....

seriously.. i din bother to read and do calculations...

at the end of the day.. i only have 4 letters ...

LPPL...

government just want to earn more money...

why they want to earn more money? because they want our currency to be bigger, so that the richer will prosper even higher.

2ndly they want a corruption free government and thus pay the ministers even higher.

 

Originally posted by zerocool85:

 

2ndly they want a corruption free government and thus pay the ministers even higher.

 

Actually I feel by paying them higher, they are already sort of engaging in corruption, but in an open manner. After all, corruption is generally about govt officials pocketing $ from the country. $ is still $ regardless if it is pocketed on the sly or what...

Oh and converting to CNG is also out for me as the nearest place for me to pump is at mandai, and I live in the east.

On a sidenote, I con't believe that there are only 2 pump stations at the jalan buroh place. How to cope? The least number of stations I see in any petrol kiosk in sg is also 4 stations sia...

Originally posted by mamamamama:

When the time comes, i think the Special Tax would still be waived la..

I don't think any of us here will live to see that day...

Originally posted by skeujin:

u dont seem to know the sg govt very well....

i'd like to see what excuses they'll give if Special Tax is implemended on CNG cars. Perhaps abolish Special Tax but add a CNG Tax instead? We'll see lor..

To me older generation Ministers got more caliber, got better vision and had the "know-how" technique, guts and experience to deal with even more difficult situation.

Raise price here and there for an easy way-out but still not fixing problems and also not a wiser move to make.

Originally posted by NewForce:

To me older generation Ministers got more caliber, got better vision and had the know-how the deal with situation.

Raise price here and there for an easy way-out but still not fixing problems and also not a wiser move to make.

the 1st generation ministers gave a shit...

unfortunately, there's still one around who seems to only care about holding on right now...

still, they gave a shit..

unlike today, will try to sell you shit to wring some revenue out of it

I dunno so much about politik, i also dunno why i pay so much tax.

All i know is if i pay so much every year to feed a bunch of elites to make me work harder but get poorer, i must be a fool.

There are so many high ranking and high pay officials burning out vitamin M daily and they are supposed to be the elites to solve such problems... and if we pay them the elite price they got to perform like one.... gimme the efficiency and effectiveness in problem solving... that's what's elites are about.

Tell me to I pay a price for LV to get a Panda or chapalang brand stuff????