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Singapore relies on e-mobility: tax bonus and charging stations as an incentive

Singapore relies on e-mobility
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Discount on e-car purchases, but costs remain high

Buyers of electric cars are expected to have three from January 2021 Receive a discount of up to 45 percent on the Additional Registration Fee (ARF) for years, which is due when you want to register a car. The ARF in Singapore includes a surcharge of between 100 and 180 percent of the purchase price, depending on the base price of the car. With a purchase price of around 40,000 euros, for example, there is an ARF surcharge of around 93,000 euros on top. In addition, car owners in Singapore are burdened with a capacity-dependent road usage tax as well as extremely limited and chargeable emission certificates and other emission taxes. The demand for these certificates always exceeds the supply. The cost of a certificate is currently around 25,000 euros. The now announced discount on the ARF is to be capped at around 13,000 euros. A similar program is to be set up for electrically powered commercial vehicles.

In addition, the government promises to increase the number of public charging stations in the city-state from currently 1,600 to 28,000 by 2030.

Tolls as a source of money

Since Singapore's national budget earns around 670 million euros a year from a kilometer charge on fuel, this item would shrink significantly if there were a massive switch to electric cars. Correspondingly, a new use tax for motor vehicles is being considered as counter-financing, which could be demanded in the form of a kilometer toll. However, no technical solutions are yet available for this. However, it is planned to be appropriately equipped from January 2021.

Critics counter the government plans that shifting private transport to electromobility cannot be the solution to the problem, as traffic itself does not decrease. Rather, the plans for an improved public transport infrastructure in the city-state should be pushed.


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