How Much Does The Government Make On Each BMW 7 Series Sold In Singapore?

[SBFNews]

How Much Does The Government Make On Each BMW 7 Series Sold In Singapore?
dollarsandsense.sg

Enough to buy a 3-room resale HDB flat at some estates.

• by Timothy Ho
• March 13, 2023

We already know that Singapore is the most expensive country in the world to purchase a car. This is largely due to the various taxes that are applied to each car that is registered in Singapore.

Even still, it comes as a surprise for me when I realise that the new BMW 7 Series Sedan, a luxury continental sedan but by no means a supercar, is currently being sold for $636,888.

Source

A BMW 7 Series is a great car, but even then, it’s not worth $636,888. In Germany where the car is built, a similar model is retailing for about USD93,920, or about S$127,000.

While it’s fair to assume a healthy margin can be made by the car distributors in Singapore, it’s actually the taxes on the car that jacks up its price. Using the new BMW 7 Series in Singapore, we calculate how much in taxes the government will collect on each car sold.

Additional Registration Fee (ARF)​

The Additional Registration Fee (ARF) is a tax imposed on all cars during registration in Singapore. The ARF payable is based on the Open Market Value (OMV) of the car. The higher the OMV, the higher the ARF would be.

Vehicle OMV	ARF Rate (% of OMV to pay)
Next $20,000 ($20,001 to $40,000)	140%
Next $20,000 ($40,001 to $60,000)	190%
Next $20,000 ($60,001 to $80,000)	250%
Above $80,000 ($80,001 and above)	320%

Based on information on Sgcarmart, the OMV of the BMW 735i sDrive Pure Excellence (A) is $102,460. So this means it would incur an ARF of $20,000 (Tier 1) + $28,000 (Tier 2) + $38,000 (Tier 3) + $50,000 (Tier 4) + $71,872 (Tier 5) for a total of $207,872.

Excise Duty​

For cars in Singapore, there is an excise duty payable of 20% of the OMV. For a car that has an OMV of $102,460, the excise duty would be $20,492.

GST​

Currently 8% as of 2023, GST is payable on the OMV and the excise duty.
For a BMW 7 Series with an OMV of $102,460 and an excise duty of $20,492, the total GST payable would be $9,836 (8% of $102,460 + 8% of $20,492)

Vehicular Emission Scheme (VES) Rebate Or Surcharge​

Depending on your vehicle’s emission, you may either have to pay a surcharge or enjoy an ARF rebate. VES rebate reduces the car’s Additional Registration Fee (ARF). VES surcharge will increase the ARF.

For the BMW 7 Series, there is a surcharge of $15,000.

Certificate of Entitlement (COE)​

A Certificate of Entitlement (COE) gives you the right to own and use a vehicle in Singapore.

Currently, a Category B COE which is what a BMW 7 Series would require costs $115,500 (March 2023).

How Much Revenue Will The Government Receive On A Car With An OMV Of $102,460​

Here’s a recap of the various costs that are incurred.

Additional Registration Fee (ARF)	$207,872
Vehicular Emission Scheme (VES)	$15,000
Certificate of Entitlement (COE)	$115,500

The amount of tax we charge on a car is truly staggering. For an expensive car with an OMV of $102,460, we are paying $368,700, or more than three times the actual open market value of the car, as taxes to the government. The type of taxes highlighted above is similar to other car models though the amount will be lesser for cars that are less expensive.

Do note in the event of early deregistration, a portion of the ARF will be refunded back to the buyer. If a car is deregistered after 10 years with no further renewal of its COE, 50% of the ARF will be refunded. The COE amount will also be prorated if the car is deregistered before 10 years.

However as announced in the Singapore Budget 2023, PARF rebates will be capped at $60,000.

https://dollarsandsense.sg/much-government-make-bmw-7-series-sold-singapore/

 

[syed putra]

Low corporate and income tax rates must be balanced with higher taxes eslewhere.

 

[blackmondy]

Thank heavens I've given up driving years. Even when my 2.0l Korean car was only $56K including COE 20 years ago, I can still feel the pinch every month.

 

[GOD IS MY DOG]

just took a look at car prices for fun yesterday...................shocking...............compared to maybe 10 years ago...............3-series today selling at 5 series prices.............


Audi A5 sedan can get for below USD50K in USA..................here, nearly SGD290K....................haven't count car loan interests some more............

 

[mahjongking]

natural resources in a small island is physically limited
every fuck govt is the same if the population are cowards. they will bully you by polite means or by force.

foreigners and rich are welcome to pay thru their noses for everything.
sinkees better go to work in buses and fuck spiders. that....is the reality

 

[winners]

I still remember when I was in Italy telling my colleagues there about the cost of a new TOYOTA COROLLA in Singapore, they were so surprised and told me that for that price, they can buy a BMW 7-Series in Italy. So, the next question they asked me was: How much is your salary?

 

[countryman]

Buying a car in Sinkapor is daylight robbery! People here just luv to be screwed over n over again!

 

[eatshitndie]

anyone who buys a bmw 6.9 is a moron.

 

[Byebye Penis]

anyone who buys a bmw 6.9 is a moron.

BMW cars are very shitty these days. The leather can peel within six months, vehicle will start to leak 2x coolant after 30 months. Headlamps, interior cracks, 2 x batteries, thermostat, water pump, heat exchanger hose, door pull handle will rot under sun, , bleeder, all will have problems. Reasons from them? Singapore is humid

When you car has issue in year 3-5 under warranty, Performance Motor will just temp fix the damages and not change parts. Why settle for quality and customer service, like a Proton hahahha

 

[Byebye Penis]

Buying a car in Sinkapor is daylight robbery! People here just luv to be screwed over n over again!

I believe that every singapore man who served NS should be awarded one COE in his lifetime, eg. five years for each COE. It is good for young families to have a car.

Then those who don't need a car, can put it up in the open market for foreigners and others to bid.

You get paid a few hundred in NS, then ten years of reservist, then foreigners drive on your roads, while you wait for your bus with baby in stroller.

 

[Byebye Penis]

BMW will give discount to event cars after Singapore Air Show.

 

[bobby]

On top of these stupid govt levies & taxes, the car owner pays car insurance premium on the amount insured on market value which includes the COE which is only a piece of paper.

 

[countryman]

Local born n bred Sinkies, u get no special privileges besides couple of vouchers here n there to buy food n groceries...You're maybe worse off than the foreigners who come to Sinkie land to take over your high paying jobs and to boss u around... Also buying your public housing and making a tidy profit when they decide to pack their bags n return home collecting all their money in cpf....
Not forgetting the Sinkie guys having to fulfill their NS n reservist obligations...
Sinkies just luv to be screwed!

 

[tobelightlight]

believe that every singapore man who served NS should be awarded one COE in his lifetime, eg. five years for each COE. It is good for young families to have a car.

This only happens when sinkies grow a pair.

 

[blackmondy]

If limpeh can afford luxury cars, limpeh will just get the Skoda Superb. Basically a poor man's VW Passat with all the Passat's innards.

 

[k1976]

How Much Does The Government Make On Each BMW 7 Series Sold In Singapore?
dollarsandsense.sg

Enough to buy a 3-room resale HDB flat at some estates.

• by Timothy Ho
• March 13, 2023

We already know that Singapore is the most expensive country in the world to purchase a car. This is largely due to the various taxes that are applied to each car that is registered in Singapore.

Even still, it comes as a surprise for me when I realise that the new BMW 7 Series Sedan, a luxury continental sedan but by no means a supercar, is currently being sold for $636,888.

Source

A BMW 7 Series is a great car, but even then, it’s not worth $636,888. In Germany where the car is built, a similar model is retailing for about USD93,920, or about S$127,000.

While it’s fair to assume a healthy margin can be made by the car distributors in Singapore, it’s actually the taxes on the car that jacks up its price. Using the new BMW 7 Series in Singapore, we calculate how much in taxes the government will collect on each car sold.

Additional Registration Fee (ARF)​

The Additional Registration Fee (ARF) is a tax imposed on all cars during registration in Singapore. The ARF payable is based on the Open Market Value (OMV) of the car. The higher the OMV, the higher the ARF would be.

Vehicle OMV	ARF Rate (% of OMV to pay)
Next $20,000 ($20,001 to $40,000)	140%
Next $20,000 ($40,001 to $60,000)	190%
Next $20,000 ($60,001 to $80,000)	250%
Above $80,000 ($80,001 and above)	320%

Based on information on Sgcarmart, the OMV of the BMW 735i sDrive Pure Excellence (A) is $102,460. So this means it would incur an ARF of $20,000 (Tier 1) + $28,000 (Tier 2) + $38,000 (Tier 3) + $50,000 (Tier 4) + $71,872 (Tier 5) for a total of $207,872.

Excise Duty​

For cars in Singapore, there is an excise duty payable of 20% of the OMV. For a car that has an OMV of $102,460, the excise duty would be $20,492.

GST​

Currently 8% as of 2023, GST is payable on the OMV and the excise duty.
For a BMW 7 Series with an OMV of $102,460 and an excise duty of $20,492, the total GST payable would be $9,836 (8% of $102,460 + 8% of $20,492)

Vehicular Emission Scheme (VES) Rebate Or Surcharge​

Depending on your vehicle’s emission, you may either have to pay a surcharge or enjoy an ARF rebate. VES rebate reduces the car’s Additional Registration Fee (ARF). VES surcharge will increase the ARF.

For the BMW 7 Series, there is a surcharge of $15,000.

Certificate of Entitlement (COE)​

A Certificate of Entitlement (COE) gives you the right to own and use a vehicle in Singapore.

Currently, a Category B COE which is what a BMW 7 Series would require costs $115,500 (March 2023).

How Much Revenue Will The Government Receive On A Car With An OMV Of $102,460​

Here’s a recap of the various costs that are incurred.

Additional Registration Fee (ARF)	$207,872
Vehicular Emission Scheme (VES)	$15,000
Certificate of Entitlement (COE)	$115,500

The amount of tax we charge on a car is truly staggering. For an expensive car with an OMV of $102,460, we are paying $368,700, or more than three times the actual open market value of the car, as taxes to the government. The type of taxes highlighted above is similar to other car models though the amount will be lesser for cars that are less expensive.

Do note in the event of early deregistration, a portion of the ARF will be refunded back to the buyer. If a car is deregistered after 10 years with no further renewal of its COE, 50% of the ARF will be refunded. The COE amount will also be prorated if the car is deregistered before 10 years.

However as announced in the Singapore Budget 2023, PARF rebates will be capped at $60,000.

https://dollarsandsense.sg/much-government-make-bmw-7-series-sold-singapore/

Buy 1 ...get 2 free?

 

[Hypocrite-The]

This is a good way to tax the rich.tax their toys

 

[Patriotmissile]

Those bozos in LTA banned the PMDs make sure you pay for these BMs. Fuck them.

 

[k1976]

Those bozos in LTA banned the PMDs make sure you pay for these BMs. Fuck them.

They also banned BMX

 

[Loofydralb]

Low corporate and income tax rates must be balanced with higher taxes eslewhere.

Only idiots believe corporations pay low taxes and individuals pay low income taxes.

COE ERP are some of the insidious forms of taxation. There are plenty more.