Diesel cars have never been popular in Singapore, especially the bigger engines. But i'm pretty sure there's a lot of driving enthusiasts out there who would love to own a diesel car, if the tax wasn't so high. In most countries, diesel cars are actually quite popular due to the fact that diesel is cheaper than petrol.

Well, things are going to change around here, soon enough...

As announced by the Minister for Finance, Mr. Tharman Shanmugaratnam, in his FY2012 Budget Statement, the special tax for Euro V compliant diesel cars will be revised with effect from 1st January 2013. Instead of the current rate of $1.25 per cubic centimetres (cc), the annual special tax for a Euro V compliant diesel car will be computed based on $0.40 per cubic centimetres (cc) of engine capacity, subject to a minimum annual payment of $400.

The revision to the special tax structure for Euro V compliant diesel cars is made in recognition of its improved emissions, relative to pre-Euro V diesel cars.

Motorists can choose to pay the special tax annually or 6-monthly, together with the road tax. The revised special tax for Euro V compliant diesel cars will result in nearly 70% savings to owners, as shown in the table below:

According to LTA, the special tax for diesel taxis and Euro IV diesel cars will remain unchanged at $5,100 per annum and $1.25 per cubic centimetres (cc) respectively.

Click here to check out new diesel cars currently in Singapore.Diesel cars