Understanding the Additional Registration Fee – Three Tiered Tribulation

Us Singaporean’s may have been a little puzzled about today’s (20th Feb) budget announcement, chat groups were abuzz and not everybody is sure what to make of it.

  1. Category D (Motorcycle) COEs will no longer contribute to Category E (Open Category)

Now that is supposed to be a good thing, since for the longest time, deregistered motorcycle COEs would be used to boost the number COEs available in the open category. This process implied a steadily declining supply of COEs and rising costs amid the demand for motorcycles.  Then apparently this came along:

2. Three tiered Additional Registration

ARF tiered system.jpg
Screenshot from LTA’s Press Room

And there is some confusion how this is calculated. We’ll do that in a bit.


So what does this mean? In reference, let’s look at the table above off LTA’s press release on the issue and below, a screenshot from LTA on the current Tax structure  involving Registration Fee and Additional Registration Fee.

Tax Structure for Motorcycles.png
Screenshot from LTA’s website on Vehicle Tax Structure

Let us use this information ato illustrate a scenario. Let us take the imaginary Open Market Value of 2 motorcycles, 1 for $5,000 and the other for $20,000.

The current system in place until the next bidding exercise would place the costs as such:

For the $5,000 motorcycle:

Registration Fee: $140
Additional Registration Fee: 15% of $5,000 = $750
Hence for a $5,000 motorcycle, these taxes would add up to $890

For the $20,000 motorcycle:

Registration Fee: $140
Additional Registration Fee: 15% of $20,000 = $3000
This adds up to $3140

And under the new system due the second bidding exercise this month,

The $5,000 motorcycle:

assuming the Registration Fee is still there: $140
Additional Registration Fee: 15% of $5,000 = $750
Still $890

And for the $20,000 motorcycle?

Registration Fee: $140
Additional Registration Fee:
15% of first $5,000 = $750
50% of the next $5,000 = $2,500
100% of remaining: $10,000
This will now total: $13,390

These simple calculations are based on the information in the press releases by LTA. Of course time will tell us just how accurate they are or if LTA will have a sudden change of heart, etc, doubtful as that may be.

Now paying an extra 13 grand for a new motorcycle in a matter of a few days time does not sound very fun. Not at all. Unless there is a significant decrease in COE prices, lets say from the current $6,000-ish to $1, those who rely on motorcycles for their livelihood will still have to pay an arm and a leg for their vehicles. No change there. Revolting.

Now what of the rest of us who enjoy our motorcycles? Passionate hobbyists, who, for us motorcycles aren’t just a form of transport but a form of lifestyle, release and expression? What an absolute killjoy.

As the head of a motorcycle dealership very sadly told me not too long ago, “the motorcycle industry in Singapore is a sunset industry”.

Feel free to air your views in the comments section. If you see these charges from a different angle, don’t be shy to share and tell us if this analysis is wrong!

8 thoughts on “Understanding the Additional Registration Fee – Three Tiered Tribulation

Leave a Reply to zazin Cancel reply

Your email address will not be published. Required fields are marked *

Enjoy this blog? Please spread the word :)