LTA to refund S$1.4 million in road tax on 1,700 vehicles following error on published rates

[SINGAPORE] The Land Transport Authority (LTA) will issue refunds to around 1,700 vehicle owners for the road tax collected between August 2022 and Nov 30, 2025.

The total amount to be refunded is around S$1.4 million, the authority said in response to queries from The Business Times.

The refunds are to correct a discrepancy between the road tax collected and the rates stipulated in the relevant legislation for that period.

The six-monthly road tax rate for diesel and diesel-hybrid goods-cum-passenger vehicles collected since Aug 1, 2022 was S$372 for vehicles with a maximum laden weight of 3.5 tonnes, LTA said. It was S$487 for vehicles with a maximum laden weight exceeding 3.5 tonnes. 

These sums were the correct amounts payable, but they were higher than the rates wrongly published in the Road Traffic Act as S$298 and S$390, respectively.

LTA discovered the discrepancy in March 2025 during a legislative review, and amended the subsidiary legislation to reflect the correct rates from Friday (Nov 28). 

In response to queries, LTA said: “LTA and MOT (Ministry of Transport) required time to conduct a comprehensive impact assessment, and to work out the refund approach after seeking legal advice from AGC (the Attorney-General’s Chambers) on the appropriate course of action in accordance with the rule of law.”

Refunds will be made via Giro to the affected vehicle owners who have registered their bank account details with LTA in their OneMotoring account; they will be made through PayNow for owners registered for it. No further action is required by affected owners.

For affected owners who have provided neither their bank account information to LTA nor registered for PayNow, LTA will notify them to update their bank account details via the OneMotoring website, or to register their PayNow account with their banks.

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“LTA apologises for the error. We have put in place measures to strengthen our internal processes to avoid future occurrences,” the statutory board said.