Budget 2023: Higher luxury car tax not expected to slow down car sales

• Buyers of cars with Open Market Value (OMV) between S$40,000 and S$80,000 to pay higher Additional Registration Fee (ARF) of 190 per cent to 250 per cent

• ARF rates raised to 320 per cent from 220 per cent for cars in the highest OMV tier of more than S$80,000

• Preferential ARF rebates capped at S$60,000 for cars and taxis

SINGAPORE’S move to raise taxes by hiking the additional registration fee (ARF), more so on luxury cars, is deemed a “cooling measure” of sorts but one that is unlikely to hurt demand, according to industry participants.