Taxi Drivers Who Are Affected by New Petrol Duty Hike Can Get Road Tax Rebates in Mar Instead of Aug

If anything, taxi uncles are the epitome of our Singaporean “complain culture”. You hop into any cab from the north, south, east or west and ah yes, the familiar conversation begins.

So they definitely weren’t too pleased with the petrol price hike that was announced in the Budget 2021 speech last Tuesday (16 Feb).

But thankfully, the government has announced some measures to mitigate the effects of the petrol price hike, especially for those who depend on their vehicles for a living.

Senior Minister of State for Transport Dr Amy Khor noted motorists’ concerns, stating in a Facebook post that they “… have worked with the unions and operators to bring forward some of the support measures, to help ease the transition for active taxi and private-hire car drivers, as well as individual owners of smaller motorcycles.”

Taxi and Private Hire Car Rebates to be Given Out Earlier in March Instead of April

According to the Land Transport Authority’s (LTA) initial news release, the 15 per cent road tax rebates were to be used from 1 August 2021 to 31 July 2022. This means that the rebates would have been given out in August.

However, it seems that this will be pushed forward instead. Taxi drivers will now receive rebates in the form of rental reductions.

“Taxi operators have committed to fully pass on the 15 per cent road tax rebates to their main hirers who are driving petrol and petrol-hybrid taxis,” said LTA in a statement released yesterday (24 Feb).

“This will be provided through rental rebates between mid-March and April 2021.”

This comes in addition to the Petrol Duty Rebates (PDR) of $360 to be disbursed over four consecutive months starting from May 2021.

This scheme is applicable for active drivers of petrol-hybrid taxis and private hire cars. Drivers who are eligible for the COVID-19 Driver Relief Fund or have completed an average of at least 200 trips per month between January and April this year will also receive the PDR.

LTA has stated that no application is needed as the road tax rebate and PDR will be automatically given to all those eligible.

The rebates are meant to offset the increase in petrol prices for a year.

Possible Additional Schemes for Private Hire Drivers

The board also mentioned that it was working with the National Private Hire Association to help ease the impact on private hire drivers.

As stated in their news release, GrabRentals and Grab’s recommended fleet partners have pledged to pass on the road tax rebates to drivers who lease petrol and petrol-hybrid vehicles from them.

According to The Straits Times, Grab has provided a 28 to 30 per cent fuel discount at selected petrol stations for those who lease cars from GrabRentals or their recommended fleets.

Gojek is also looking to introduce “additional incentive rebates” for their drivers. There will be a fuel rebate package including an extra 3 per cent monthly fuel rebate for all drivers who meet a minimum number of trips and fuel spending and a higher cap on weekly fuel rebates, as reported by TODAYonline.

“We urge all vehicle lessors to pass on the road tax rebates to their lessees, who are incurring the higher petrol costs,” expressed LTA.

Motorcycle Rebates

Motorcycle rebates are to be given out as well. All motorcycle owners will receive 60% road tax rebates from 1 August 2021 to 31 July 2022.

LTA has similarly encouraged motorcycle lessors to pass on the rebates to those who rent them.

According to Dr Khor’s Facebook post, PDRs of $80 and $50 will be given to motorcycle owners for motorcycles of 200cc and below, and motorcycles of 201 to 400cc respectively. This rebate will be received through GIRO or PayNow from May 2021.

MPs Urge the Government to Review the Price Hike

The beginning of the Budget debate yesterday (24 Feb) saw MPs calling for the government to review the increase in the price of petrol, concerned for motorists’ livelihoods and the potentially far-reaching effects.

MPs from both the PAP and opposition raised the question of the timing and appropriateness of the price hike.

As reported by The Straits Times, Dr Lim Wee Kiak (Sembawang GRC) questioned the need for the price hike to take immediate effect especially since it would take another 9 years for Singapore to have 60,000 charging points for electric vehicles (EVs). Moreover, the reduction in the minimum Additional Registration Fee for such cars will only take place next year.

Though Singapore’s goal is to either shift away from petrol cars or to go car-lite in order to combat climate change, we simply aren’t ready yet.

“Why are motorists penalised or coerced to move to EVs when we haven’t got sufficient infrastructures in place?” he queried.

WP’s Mr Faisal Manap (Aljunied GRC) was concerned about the livelihood of drivers, given the dismal situation of little tourists and WFH arrangements.

He also added that “…this is not an excuse to inflict unnecessary trauma on an already besieged group. By the time the rebates reach the pockets of the drivers, some of them may have resorted to drastic measures already to keep themselves and their families economically afloat.”

Worries over possible damaging trickle-down effects of the hike such as increased delivery and transport costs, as well as basic necessities were echoed by both Mr Faisal and MP Darryl David (Ang Mo Kio).

The latter also asked if the government would be willing to extend the rebates to taxi drivers and private-hire car drivers beyond the present period if necessary.

To read more about what went on on the first day of the Budget debate, click here.

Feature Image: joyfull/ Shutterstock.com