Struck by a double whammy for buying a green car

Letter from Tan Kiam Heong, Straits Times Forum 25 Jul 08;

I WISH to highlight the implications of buying a vehicle using compressed natural gas (CNG).

Before booking a CNG-fitted car, I checked and was told there was a special tax exemption on such cars until December next year.

Since then, I have been told the special tax is six times more than the road tax of a petrol-driven car.

I bought the CNG vehicle because I wished to be environment friendly and cut the cost of owning a car.

But that is not the case.

A CNG car may be environment-friendly, but it is costlier.

That is not all.

The recent steep hikes in CNG prices, which stand at $1.80 per kilo currently, are also a significant dampener.

When December next year arrives, owners will either have to pay or un-install or deregister the CNG car.

To me, neither option makes sense.

But I will have to choose one when the time comes.

I hope the authorities can explain why there is such a heavy tax on vehicles that are environment-friendly, as well as the ridiculous hikes in CNG prices in recent weeks, if not months.