Buyers of cars with an open market value of $40,000 or less will not be affected, says Wong, who is also deputy prime minister.
Buyers of cars with OMV of more than $40,000 and up to $60,000, however, will have to pay higher ARF rates of 190% of the OMV.
Overall, buyers of cars in the first $20,000 OMV tier will pay an ARF of 100%. This goes up with every $20,000 in OMV to 140%, 190%, 250% and 320% in ARF.
The higher fees will begin from the second Certificate of Entitlement (COE) bidding in February, scheduled for Feb 22.
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Currently, the preferential ARF rebates are measured as a percentage of the payable ARF. Wong says he will cap preferential ARF rebates at $60,000 to avoid providing excessive rebates to more expensive cars when they are deregistered.
The ARF change is expected to generate about $200 million in additional revenue per year, says Wong, but the actual amount will depend on the state of the vehicle market.
