Encourage green living, but actions speak otherwise

A lack of refuelling stations is not the only concern worrying drivers who are considering switching to Compressed Natural Gas (CNG). Drivers of CNG vehicles may have to pay an additional tax from 2010.

According to LTA website, ONE.MOTORING, there is this Special Tax involved on CNG. Right now, the government has waived it until 31 December 2009, but beyond that it's unclear. Recovering fuel duty and discouraging the use of polluting vehicles are reasons for the Special Tax.

The latest EURO IV diesel engines create five times more of the pollutant called PM2.5 than a petrol-driven car & the Special tax for it is pegged at S$1.25 per engine cc. So the owner of a 1,600cc diesel vehicle pays S$2,000 a year in Special Tax. But CNG vehicles produce cleaner emissions than petrol vehicles, so is there a need for this Special Tax?

The Land Transport Authority (LTA) has not yet decided whether to extend the exemption. But it said if Special Tax is imposed on CNG cars, it will not necessarily be the same as that on Diesel IV vehicles. The way the government is setting the policies - or not setting the policies, is rather not helping the public. And in fact, if they really want to encourage the public to go to greener vehicles, then they should set the policies right in the first place.

LTA will announce its decision on the Special Tax for CNG cars in due course. So for now, drivers considering a CNG vehicle will have to live with the uncertainty of higher taxes in future or wait until a decision is made.