Only 5% of households in Singapore own more than one car. An Additional Buyer’s Stamp Duty (ABSD) on multi-car ownership based on residential address is difficult to implement. For example, in multi-generational households, such a measure would unintentionally affect families who may genuinely need more than one car for various reasons, including caregiving responsibilities. The families living in HDB flats would feel the impact most keenly, while wealthier households could more easily absorb the higher charges or register cars under different names or residential addresses. Furthermore, the COE clearing price is determined by the lowest, not the highest, winning bid. Therefore, a surcharge is not likely to affect COE prices significantly.

Progressivity is achieved through the vehicular tax system. Luxury car buyers already pay higher taxes through the Additional Registration Fee (ARF), based on the car’s Open Market Value. Cars with higher open market value pay higher ARF, with the highest tier rate of ARF set at 320%. The Government has also raised ARF rates twice in the last four years (in Budgets 2022 & 2023, after it was first introduced in 2013) to strengthen this progressivity.