Budget 2023 - How Car Buyers Will Be Affected!

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The government has just released their FY2023 Budget Statement! There will be minor changes to the taxation structure of cars locally, with alterations aimed at higher-end vehicles.

Cars with Open Market Value of between $40,000 and $60,000 will have a tax rate of 190%, with those $60,000 to $80,000 at 250%, and cars that are worth more than $80,000 on the Open Market being slapped with a tax of 320%. PARF rebates will also be capped at $60,000.Editors%2 Fimages%2 F1676447121603 Photo 6293913859915887086 YThe revisions have been put in place to target premium vehicles. Using an Audi e-tron SUV as an example, the pre-revision ARF payable inclusive of government rebates is $42,000. As its OMV is $64,000, the resultant new payable sum under the revised scheme is now $52,000.

With high COE and registration costs, it’s perhaps time to look at a used car if you desperately need a set of wheels to call your own!

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