Data on Appeals from Car Buyers Affected by Recent PARF Rebate Cuts and Transitional Support Offered to Affected Buyers

Written Reply to Parliamentary Question

Mr Chua Kheng Wee Louis asked the Acting Minister for Transport

a.      what is the number of appeals received from car buyers with committed purchases that are estimated to be affected by the recent Preferential Additional Registration Fee (PARF) rebate cuts; and

b.      whether the Ministry is considering a transitional provision to support affected buyers.

Reply by Acting Minister for Transport Jeffrey Siow:

1.      The recent changes to the Preferential Additional Registration Fee (PARF) rebate were implemented with immediate effect to avoid distorting the Certificate of Entitlement (COE) market. This is in line with our general approach on market sensitive tax changes and was the same approach taken in 2023 when the PARF rebate cap was implemented and the Additional Registration Fee (ARF) was raised.

2.      Fewer than 2,000 car buyers with committed purchases are estimated to be affected. We have received under 30 appeals from car buyers with committed purchases who might be affected by the PARF changes.

3.      The purchase of a car is a commercial arrangement between the dealer and buyer. We understand some dealers have already made alternative arrangements with affected buyers.