T.D.N.N.: Car dealers adopt wait-and-see approach to new diesel tax

Last week, the government cut the Special Tax for Euro V compliant cars from $1.25 per cubic centimetre (cc) of engine capacity to $0.40 per cc from January 2013, to encourage the adoption of new and cleaner diesel technologies.

Diesel-powered passenger cars not only have superior fuel economy compared with petrol-engined versions but also beefier torque that makes them fun to drive.

'In terms of fuel consumption, the argument for the consumer is now a positive one,' said Reinhold Carl, managing director of Audi Singapore. 'It can make economic sense, on top of the performance edge that diesel engines offer on the road.'

BMW Group Asia managing director Neil Fiorentinos said the revised diesel tax, in conjunction with the Carbon Emissions-based Vehicle Scheme (CEVS), will raise consumers' awareness of the new diesel technology.

'With the increased consumer awareness and interest, it will give rise to more diesel models being made available in Singapore thereby offering them with more choices,' said Mr Fiorentinos.