LTA to Refund S$1.4 Million Due to Road Tax Discrepancy

The Land Transport Authority (LTA) of Singapore will refund a total of S$1.4 million (approximately US$1.08 million) to owners of commercial vehicles following the discovery of a discrepancy in road tax rates. This correction will affect around 1,700 owners of diesel and diesel-hybrid goods-cum-passengers vehicles, who were charged incorrect road tax rates between August 1, 2022, and November 30, 2025.

According to the LTA, the refund exercise aims to reconcile the rates charged with those stipulated in the relevant legislation. During the specified period, the biannual road tax rates were set at S$372 for vehicles with a maximum laden weight (MLW) not exceeding 3.5 metric tonnes, and S$487 for those exceeding this weight. However, when legislative amendments were made in 2020, the rates were incorrectly published as S$298 and S$390, respectively.

The LTA identified this error during a legislative review in March 2025. In an official statement, the authority expressed its regret for the mistake, stating, “LTA apologises for the error. We have put in place measures to strengthen our internal processes to avoid future occurrences.”

### Refund Process and Timeline

The S$1.4 million will be refunded to the affected vehicle owners through GIRO or PayNow, with no additional action required from the recipients. The refunds are expected to be processed and credited in early 2026. Once the transactions are complete, the LTA will notify recipients via e-notification, SMS, or hardcopy letters.

To ensure security, the LTA emphasized that notifications will not include any clickable links, and the authority will never contact individuals by phone to request personal information.

This initiative not only rectifies the financial impact on vehicle owners but also reflects the LTA’s commitment to maintaining transparency and accountability in its operations.