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Taxes And Duties
What is the rationale to impose CNG duty charges?
Since the introduction of CNG vehicles in 2002, the vehicle owners have been enjoying the following concessions: (a) Green Vehicle Rebate (GVR); and (b) Exemption from special tax and unit CNG duty, taking into account their cleaner PM2.5 (particulate matter) emissions relative to diesel vehicles These are temporary concessions, which were given at a time when the population of CNG vehicles was small. They were meant to help build a critical mass of CNG vehicles and the accompanying CNG refuelling infrastructure. The continued adoption of CNG vehicles must however be self-sustainable without long-term government support. After a passage of 10 years, less support should be needed. From 1 Jan 2012, a unit CNG duty will be introduced. This was announced in Budget 2009 to give sufficient advance notice to CNG vehicle owners. The unit CNG duty of $0.20 per kg is significantly lower than the $0.41 per litre that we currently levy on petrol. CNG vehicles will continue to be on the GVR scheme until the scheme’s expiry on 31 Dec 2012.
What is the rationale to impose the ¾-tank rule for CNG vehicles crossing to Malaysia?
The ¾- tank rule applies to all dutiable motor fuels to prevent revenue leakage. With CNG becoming dutiable with effect from 1 Jan 2012, it is subject to the ¾- tank rule too.
What if I am using petrol only for my CNG vehicle, will I be exempted from the ¾-tank rule?
For petrol-CNG vehicles, the ¾-tank rule applies to both the petrol and CNG tanks. The CNG tank will be subject to the ¾-tank rule unless the CNG system is removed. (Vehicles with the CNG system removed will still be subjected to the ¾-tank rule for the petrol tank.)
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