Qualifying Conditions for the Scheme

1. A claim for one-year write-off of the capital expenditure incurred on the provision of a new goods vehicle or bus to replace an existing vehicle can be made only if all the following conditions are satisfied:

1. the new diesel-driven goods vehicle or bus is registered during the period from 15 Feb 2007 to 14 Feb 2012;
   
2. the new diesel-driven goods vehicle or bus is registered within one month before, or within six months after, the deregistration of the existing vehicle (see paragraph 2 for illustration);
   
3. the new diesel-driven goods vehicle or bus is of the same index series as the index series of the existing vehicle (this condition is further explained in paragraphs 3 to 5);
   
4. the existing vehicle was registered before 1 Oct 2006 and uses diesel oil as fuel;
   
5. the existing vehicle is not a vehicle bearing the index mark 'RU' for use within certain restricted areas; and
   
6. the existing vehicle at the date of deregistration has::

   (i) at least one year of statutory lifespan left; and

   (ii) at least one year remaining in its certificate of entitlement (COE) or a COE which can be renewed after its expiration.

[  f (ii) is not applicable to buses exempt from COE eg CB-plate buses and Omnibuses.  This condition is further explained in paragraphs 6 to 8.  ]

2. Condition (a) specifies the time limit within which the new vehicle must be registered. For example, if the existing vehicle is deregistered on 15 May 2007, the new vehicle, to be considered for the one-year write-off, must be registered on or after 15 Apr 2007 but not later than 15 Nov 2007.

3. Condition (c) requires the new vehicle and the existing vehicle which is being replaced to belong to the same index series as classified under the rule made under the Road Traffic Act. Therefore, a new diesel-driven goods vehicle is considered as a replacement of another vehicle only if the latter is a goods vehicle classified under the same index series as the new vehicle.  Similarly, a new bus is a replacement of another vehicle if the latter is a bus belonging to the same index series as the new bus.
 
4. To ascertain whether the new vehicle and the existing vehicle belong to the same index series, reference can be made to the registration numbers of the two vehicles. If the index marks (i.e. the alphabet(s) before the registration number, e.g. the index mark of a goods vehicle bearing registration number GH1234X is GH) of the two vehicles belong to the same index series, the two vehicles would be considered to have satisfied condition (c).  The following index series are used currently:

Goods vehicles

'G' index series, i.e. index marks 'G GA GB GC etc.'

'Y' index series, i.e. index marks 'Y YA YB YC etc.'

'X' index series, i.e. index marks 'X  XA XB XC etc.'

Buses

'CB' index series for school buses

'TIB CSS SBS' index series for omnibuses

'PA' index series for general purpose buses

'SH' index series for omnibuses operated by Singapore-Johore Express Pte Ltd and for tourist related buses, e.g. Singapore trolley buses

5. There had been a change in the index series used for general purpose buses. Currently, the index series is PA while in the past such buses were classified using the 'PB PH PZ' index series.  Therefore, condition (b) would be satisfied if a new bus registered under the 'PA' index series is to replace an existing bus under the 'PB PH PZ' index series.

6.  Under condition (f)(i), the existing vehicle which is being replaced must have at least one year of statutory lifespan left as at the date when it is de-registered.  The statutory lifespan of a vehicle is the period during which a vehicle licence can be taken out on the vehicle and commences from the registration date of the vehicle (e.g. a goods vehicle registered on, say 8 Apr 1991, would reach the end of its statutory lifespan of 20 years on 7 Apr 2011). Currently, the statutory lifespan of a goods vehicle and a bus (other than an omnibus) is 20 years. Omnibuses, which are buses operated by the 3 public bus operators (which bear the index marks 'SBS', 'TIB' or 'CSS') and Singapore-Johore Express Pte Ltd (which bear the index marks 'SH'), have a statutory lifespan of 15 years for those registered before 1 Sep 2003 and 17 years for those registered on or after 1 Sep 2003.

7.  Condition (f)(i) is imposed in addition to condition (f)(ii) because it is possible for a vehicle to have a COE which is valid for a period extending beyond its statutory lifespan.  Nonetheless, such a vehicle can only ply on the road up to the end of its statutory lifespan. Therefore, to ensure that an old vehicle which is taken off the road is one which still has at least one year left to ply on the road and not one which would anyway be scrapped shortly, condition (f)(i) has been imposed.

8.  Condition (f)(ii) is not applicable to vehicles which are exempted from obtaining a COE, e.g. omnibuses and school buses.

Obligations of Taxpayers who Make Claims