By Christopher Tan

A TAX waiver for green vehicles brought into Singapore for test-bedding has been made sweeter.

The Government has enhanced what is known as the Transport Technology Innovation Development Scheme (Tides), which allows vehicles such as electric cars, plug-in hybrids and fuel-cell cars to be exempted from certificate of entitlement, Additional Registration Fee and Customs duty.

This practically renders them tax-free.

In the Budget announcement this week, the Government said the Tides tax-free period has been extended from the original two years to six. The number of cars allowed under Tides has also been expanded substantially: from 300 units to 1,300.

The Government estimates that the enhanced scheme - first reported by The Straits Times on Feb 8 - will cost $75 million in forgone taxes.

Several vehicle manufacturers, car dealers and fleet operators are applauding the move.

Daimler South-east Asia spokesman Helfried Scharf said: 'We are very happy to see the Government taking test-bedding so seriously.'

'We're working very hard' to secure a supply of cars for test-bedding here, he added, but did not give details. 'Hopefully, we'll have something to announce soon.'

BMW Asia spokesman Erin Atan said the enhanced Tides scheme could speed up BMW's decision to introduce such models here. It is expected to roll out its first electric Beemer by 2013.

She described the new scheme as 'fantastic news', adding that the company has been in dialogue with the Economic Development Board, which administers Tides.

Mitsubishi agent Cycle & Carriage, which has a ready supply of electric hatchbacks, cheered the tweaked scheme. C&C director of operations Alvyn Ang said the longer waiver period of the new scheme will allow users to depreciate the cost of the cars over six years instead of two.

'It removes a lot of uncertainty,' he added.

Asked for a list of vehicle types that will qualify for Tides, an EDB spokesman said any company that brings in vehicles for test-bedding can apply. 'But there's no guarantee everyone will get it. We will assess each applicant on its merits,' he said.

This article was first published in The Straits Times.

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