Taxis: Reduce road tax, but up diesel tax?

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By: Leong Sze Hian

A friend who is a taxi driver told me that whilst the Budget announced a reduction in the road tax for diesel cars – at the same time it also raised the diesel tax. Does this mean that it helps those taxi drivers who park long hours at say RWS, but tax those who drive high mileage on the road more?

First they removed the minimum daily mileage, which may hint arguably, less policy support for taxi drivers.

But easier for Uber/Grab and car rentals to feed on the drivers.

The taxi diesel vehicle’s tax is reduced by $2.33 per day,  but the use of diesel is up by $0.10 per liter.

At the end of the day – taxi drivers end up paying more.

Where is the logic for such Budget measures – reduce one thing, raise another thing – bottom line – pay more!

Can the Government tell us how much more money it will collect from this Budget change in transportation tax policy?