Latest luxury car tax could spur rush to dealers with transferable COEs
Speculators with the right COE could profit big by selling to luxury buyers, but the window of opportunity is closing fast
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THE race is on to get ahead of the new luxury car taxes that Finance Minister Lawrence Wong announced in his Budget speech on Tuesday (Feb 14). All buyers have to do is get their hands on a suitable Certificate Of Entitlement (COE) – or find a car dealer with one.
Doing so could save hundreds of thousands. For example, buyers can still reap as much as S$300,000 of tax savings on a new Aston Martin or Bentley, according to authorised dealer Wearnes Automotive.
The new tax schedule raises the Additional Registration Fee (ARF) payable on cars with an Open Market Value (OMV) of more than S$40,000, but the adjustment becomes steeper as prices get higher. For the OMV portion above S$80,000, the ARF tops out at 320 per cent, up from 220 per cent.
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