(Feb 13): The Singapore government reaped billions of dollars more in vehicle quota premiums and car taxes than it projected as the cost of driving reached record highs in the city-state.
Vehicle quota premiums raised S$8.66 billion in the year ending March 2026, about 31% more than the government initially estimated a year ago. When combined with motor vehicle taxes, it brings the total to S$11.05 billion — an amount greater than the annual gross domestic product (GDP) of Fiji.
Singapore has a unique system for allowing cars to stay on the road. Every vehicle must be granted a Certificate of Entitlement (COE) as part of a bidding process, which grants permission for it to be driven for a maximum of 10 years.
Current COE prices for even the most basic passenger car now start at S$106,320, which means a new Toyota Camry costs
S$266,888 — more than the price of a Porsche 911 in Miami, Florida.
The latest budget marks the fourth time in the past six years that Singapore’s vehicle-specific levies have generated more money than the government originally expected. This has helped propel the country into a budget surplus, in conjunction with other boons such as rising corporate income tax revenue.
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And it’s only set to rise, with the government projecting vehicle quota premiums and motor vehicle taxes will raise a combined S$12.22 billion in the year ending March 2027, in part due to “an expected increase in Certificate of Entitlement quota”.
Uploaded by Evelyn Chan
