Inflated Road Tax Bill

[Kayeesha]

I understand the Government granted a one-year road tax rebate of 15% for petrol vehicles and this is applicable from 1 August 2021 to 31 July 2022.

Although, my last road tax bill in Oct 2021 was lower than usual, checking how the amount was calculated I noted that LTA had overstated the amount payable (round up) and understated the rebate (round down) resulting in an overcharge of $1.56. I queried this rather unfair method of calculation (all in their favour) but they simply said this was how their system calculates.

I just received my latest road tax bill which is as expected higher than my calculation and this time by $5.38! I cannot see how the final amount is calculated but based on the example on onemotoring website, I think LTA has broken up the calculation into a number of time periods and rounding up the amount payable for each period, hence resulting in a much higher amount. Is this right?

For those who own cars, may I know if your road tax bill is calculated correctly when taking into account the 15% rebate? Thanks.

 

[limster]

I understand the Government granted a one-year road tax rebate of 15% for petrol vehicles and this is applicable from 1 August 2021 to 31 July 2022.

If your road tax renewal goes past 31 July 2022, obviously no rebate for that portion?

Hope Cat B COE will drop after people finish their panic buying of luxury cars... need to replace my car this year

 

[Kayeesha]

If your road tax renewal goes past 31 July 2022, obviously no rebate for that portion?

Hope Cat B COE will drop after people finish their panic buying of luxury cars... need to replace my car this year

Thanks limster.

Here is my calculation based on my normal road tax rate of $3,570 per year:

Period​	# Days​	Road Tax​	Rebate​	Net Amount​
13 Apr 2022 to 31 Jul 2022	110​	$1,075.89 (110/365 x $3,570.00)​	$161.38 (15% x $1,075.89)​	$914.51​
1 Aug 2022 to 12 Apr 2023	255​	$2,494.11 (255/365 x $3,570.00)​	- (0% x $2,494.11)​	$2,494.11​
Total	365​	$3,570.00​	$161.38​	$3,408.62​

LTA's figure is $3,414.00.

Even when I followed their example and broke up the calculation into 6-monthly periods, and round up payments and round down rebates, all in their favour as they had done for the previous bill, I still cannot arrive at $3,414.00

Period​	# Days​	Road Tax​	Rebate​	Net Amount​
13 Apr 2022 to 31 Jul 2022	110​	$1,075.89 (110/365 x $3,570.00)​	$161.38 (15% x $1,075.89)​	$915.00 ($1,076.00 - $161.00)​
1 Aug 2022 to 12 Oct 2022	73​	$714.00 (73/365 x $3,570.00)​	- (0% x $714.00)​	$714.00​
13 Oct 2022 to 12 Apr 2023	182​	$1,780.11 (182/365 x $3,570)​	- (0% x $1,780.11)​	$1,781.00​
Total	365​	$3,570.00​	$161.38​	$3,410.00​

 

[andyhtc]

I understand the Government granted a one-year road tax rebate of 15% for petrol vehicles and this is applicable from 1 August 2021 to 31 July 2022.

Although, my last road tax bill in Oct 2021 was lower than usual, checking how the amount was calculated I noted that LTA had overstated the amount payable (round up) and understated the rebate (round down) resulting in an overcharge of $1.56. I queried this rather unfair method of calculation (all in their favour) but they simply said this was how their system calculates.

I just received my latest road tax bill which is as expected higher than my calculation and this time by $5.38! I cannot see how the final amount is calculated but based on the example on onemotoring website, I think LTA has broken up the calculation into a number of time periods and rounding up the amount payable for each period, hence resulting in a much higher amount. Is this right?

For those who own cars, may I know if your road tax bill is calculated correctly when taking into account the 15% rebate? Thanks.

Just drive on the road a bit more to claim back the $5.38 'overcharged' tax

 

[narutos]

$5 out of $3400 is just <0.15% nia

 

[reddevil0728]

Thanks limster.

Here is my calculation based on my normal road tax rate of $3,570 per year:

Period​	# Days​	Road Tax​	Rebate​	Net Amount​
13 Apr 2022 to 31 Jul 2022	110​	$1,075.89 (110/365 x $3,570.00)​	$161.38 (15% x $1,075.89)​	$914.51​
1 Aug 2022 to 12 Apr 2023	255​	$2,494.11 (255/365 x $3,570.00)​	- (0% x $2,494.11)​	$2,494.11​
Total	365​	$3,570.00​	$161.38​	$3,408.62​

LTA's figure is $3,414.00.

Even when I followed their example and broke up the calculation into 6-monthly periods, and round up payments and round down rebates, all in their favour as they had done for the previous bill, I still cannot arrive at $3,414.00

Period​	# Days​	Road Tax​	Rebate​	Net Amount​
13 Apr 2022 to 31 Jul 2022	110​	$1,075.89 (110/365 x $3,570.00)​	$161.38 (15% x $1,075.89)​	$915.00 ($1,076.00 - $161.00)​
1 Aug 2022 to 12 Oct 2022	73​	$714.00 (73/365 x $3,570.00)​	- (0% x $714.00)​	$714.00​
13 Oct 2022 to 12 Apr 2023	182​	$1,780.11 (182/365 x $3,570)​	- (0% x $1,780.11)​	$1,781.00​
Total	365​	$3,570.00​	$161.38​	$3,410.00​

Did you share with them your calculation and ask them why the discrepancy?

 

[Kayeesha]

Thanks andyhtc, narutos and reddevil0728. However, ...

Just drive on the road a bit more to claim back the $5.38 'overcharged' tax

I don’t understand the logic for this.

$5 out of $3400 is just <0.15% nia

So, it is ok for the government to collect 7.15% GST?

Did you share with them your calculation and ask them why the discrepancy?

The last time I wrote in to them, they sent me a standard email reply which did not address my questions nor my calculations. When I requested that they address the points in my email, basically why are they overstating the amount payable and understating the rebate amount, they simply contacted me and said they just follow the system and they cannot do anything, not even feedback!

Anyway, I will try and write in again.

Sigh, where is the principle? I cannot understand a Singapore government agency doing this. Imagine collecting this much from every car owner! Car owners are already being penalised heavily so I don’t understand the need for this underhanded manner of collecting more money.

 

[andyhtc]

Thanks andyhtc, narutos and reddevil0728. However, ...


I don’t understand the logic for this.


So, it is ok for the government to collect 7.15% GST?


The last time I wrote in to them, they sent me a standard email reply which did not address my questions nor my calculations. When I requested that they address the points in my email, basically why are they overstating the amount payable and understating the rebate amount, they simply contacted me and said they just follow the system and they cannot do anything, not even feedback!

Anyway, I will try and write in again.

Sigh, where is the principle? I cannot understand a Singapore government agency doing this. Imagine collecting this much from every car owner! Car owners are already being penalised heavily so I don’t understand the need for this underhanded manner of collecting more money.

You are paying a bit more tax than expected. You can drive a bit more on LTA's roads to maximise what you have paid to feel a bit better.

My take is the calculation goes all the way down to the engine cc with rounding offs inside the functions rather than pro-rating from the previous road tax. Hence, the discrepancy.

 

[reddevil0728]

Thanks andyhtc, narutos and reddevil0728. However, ...


I don’t understand the logic for this.


So, it is ok for the government to collect 7.15% GST?


The last time I wrote in to them, they sent me a standard email reply which did not address my questions nor my calculations. When I requested that they address the points in my email, basically why are they overstating the amount payable and understating the rebate amount, they simply contacted me and said they just follow the system and they cannot do anything, not even feedback!

Anyway, I will try and write in again.

Sigh, where is the principle? I cannot understand a Singapore government agency doing this. Imagine collecting this much from every car owner! Car owners are already being penalised heavily so I don’t understand the need for this underhanded manner of collecting more money.

Will you agree that the problem is likely not due to some systemic error,

but it’s more of them not bother to explain to you your math

 

[reddevil0728]

You are paying a bit more tax than expected. You can drive a bit more on LTA's roads to maximise what you have paid to feel a bit better.

My take is the calculation goes all the way down to the engine cc with rounding offs inside the functions rather than pro-rating from the previous road tax. Hence, the discrepancy.

Some people will call this a matter of principle.

cause you can pay lower and still drive more.

 

[Kayeesha]

Many thanks for your replies.

You are paying a bit more tax than expected. You can drive a bit more on LTA's roads to maximise what you have paid to feel a bit better.

Driving more means paying more for petrol. Fuel pump prices are at record highs. So, I don’t think I will be doing that. I also don’t want to run down my car and run the risk of a huge repair bill.

Will you agree that the problem is likely not due to some systemic error,

but it’s more of them not bother to explain to you your math

Unfortunately, I think they have programmed their system to calculate to their advantage and as long as they can get away with it, they will continue doing so.

 

[reddevil0728]

Many thanks for your replies.


Driving more means paying more for petrol. Fuel pump prices are at record highs. So, I don’t think I will be doing that. I also don’t want to run down my car and run the risk of a huge repair bill.


Unfortunately, I think they have programmed their system to calculate to their advantage and as long as they can get away with it, they will continue doing so.

But what if this “advantage” was the intended policy interpretation?

 

[Kayeesha]

But what if this “advantage” was the intended policy interpretation?

Sorry but are you saying that is how we should interpret the Singapore government’s policies? If they say they will give 15% rebate, they actually intend to give less? Similarly, if they say they will tax at 20%, they actually intend to tax higher?

 

[reddevil0728]

Sorry but are you saying that is how we should interpret the Singapore government’s policies? If they say they will give 15% rebate, they actually intend to give less? Similarly, if they say they will tax at 20%, they actually intend to tax higher?

I’m saying there might be a difference in interpretation, but both isn’t wrong.

but until that’s proven to be the case you might see it as they are taking advantage.

the problem now is they don’t want to engage.

 

[narutos]

So, it is ok for the government to collect 7.15% GST?

This thread is about you complain about getting less road tax rebate, no?

 

[sohguanh]

Anyway, I will try and write in again.

Sigh, where is the principle? I cannot understand a Singapore government agency doing this. Imagine collecting this much from every car owner! Car owners are already being penalised heavily so I don’t understand the need for this underhanded manner of collecting more money.

Can I ask you live in Spore a long time? Only time to get things moving (hopefully) is to Meet Your MP session. Need go early book ticket. But Covid they cancel now dunno they reactivated or not. A letter written by the MP hold majestic power in Spore civil service. Basically the relevant dept need to provide an answer ASAP to the MP request and a ticket is logged. Why I know? Long time ago I was a former civil servant. MP request come in everyone busy like F !!!!

 

[Kayeesha]

I’m saying there might be a difference in interpretation, but both isn’t wrong.

but until that’s proven to be the case you might see it as they are taking advantage.

the problem now is they don’t want to engage.

Thanks reddevil0728 for discussing.

This thread is about you complain about getting less road tax rebate, no?

No, it’s about how did LTA arrive at a higher amount and whether others have experienced the same thing.

Can I ask you live in Spore a long time? Only time to get things moving (hopefully) is to Meet Your MP session. Need go early book ticket. But Covid they cancel now dunno they reactivated or not. A letter written by the MP hold majestic power in Spore civil service. Basically the relevant dept need to provide an answer ASAP to the MP request and a ticket is logged. Why I know? Long time ago I was a former civil servant. MP request come in everyone busy like F !!!!

Thanks sohguanh. Let me write to LTA again and see what they say this time. At least, based on the feedback here, I get the feel that I am not being unreasonable for finding this an issue. Thanks everyone, I really appreciate your replies.

 

[really_noob]

I calculated for mine, the rebate they gave me and the amount I'm due to pay now is correct. I pay every 6 months in April and October. Last October, based on my calculations I'm supposed to pay $270.32, they billed me $270. Now Apr 2022 to Oct 2022 should be $311.10, they bill me $311. The rounding off is to my benefit.

 

[Kayeesha]

I calculated for mine, the rebate they gave me and the amount I'm due to pay now is correct. I pay every 6 months in April and October. Last October, based on my calculations I'm supposed to pay $270.32, they billed me $270. Now Apr 2022 to Oct 2022 should be $311.10, they bill me $311. The rounding off is to my benefit.

Thanks really_noob. Do you mind sharing the details of your calculation? Thanks.

 

[really_noob]

Thanks really_noob. Do you mind sharing the details of your calculation? Thanks.

Just realised our renewal period dates are exactly the same! I understand your perspective because your road tax is by the thousands which prompted you to do some calculations. I wouldn't have bothered to look into the details for mine but since you brought your case up, I decided to exercise my brains with some paper and calculator.

My road tax is $682 (12 months), $341 (6 months).

13 Apr 2021 to 12 Oct 2021. Paid $341 in March 2021.
Accounting for the rebate, amount for this period should be: $205.534+115.94 = $321.47
(110 days 682/365*110 = $205.534
73 days 682/365*73*0.85 = $115.94)
Which means overpayment of 341-321.47 = 19.53

13 Oct 2021 to 12 Apr 2022: Amount for this period should be 341*.85 = 289.85. Taking into account overpayment, I should be paying 289.85-19.53 = 270.32
Government charged me $270, I saved $0.32.

13 Apr 2022 to 12 Oct 2022: Amount for this period should be 174.7041 + 136.40 = 311.10
(110 days 682/365*110*.85 = $174.7041
73 days 682/365*73 = $136.40)
Government charged me $311, I saved $0.10.