LTA to Refund S$1.4 Million in Road Tax Overcharge to Owners

The Land Transport Authority (LTA) of Singapore announced it will refund a total of S$1.4 million (US$1.08 million) to approximately 1,700 owners of commercial vehicles. This decision follows the discovery of a discrepancy between the correct road tax rates and those actually charged to vehicle owners.

The refunds pertain to road tax collected from August 1, 2022, to November 30, 2025. The LTA identified the error during a legislative review in March 2025. The correct biannual road tax rates for diesel and diesel-hybrid goods-cum-passengers vehicles should have been S$372 for those with a maximum laden weight (MLW) not exceeding 3.5 metric tonnes, and S$487 for those exceeding this weight. However, legislative amendments made in 2020 erroneously published the rates as S$298 and S$390, respectively.

Refund Process and Notifications

In response to the error, the LTA is taking steps to ensure that affected vehicle owners receive their refunds without needing to take any further action. Refunds will be processed through GIRO or PayNow, and are expected to be issued in early 2026. Once the transactions are completed, recipients will be notified via e-notification, SMS, or hardcopy letters. The LTA emphasized that its notifications will not contain clickable links and will not request personal information via phone.

The authority has expressed regret for the error, stating, “LTA apologises for the error. We have put in place measures to strengthen our internal processes to avoid future occurrences.”

This refund initiative aims to rectify the financial impact on vehicle owners caused by the incorrect tax rates. As the LTA moves forward, it remains committed to maintaining transparency and accuracy in its fiscal operations.