BMW, Mercedes Boom in Singapore as Rich Shrug Off Higher Taxes

As Singapore’s wealthy residents face higher taxes on luxury cars, German carmakers BMW and Mercedes are experiencing a boom in sales. According to official data, BMW sales increased by 25% in 2020, while Mercedes reported a 16% rise in sales. These figures are surprising given that Singapore implemented a 15% increase in the Additional Registration Fee (ARF) in 2018 for cars with an Open Market Value (OMV) of $50,000 and above. The ARF is a tax that buyers have to pay when purchasing a new car in Singapore, and it is a percentage of the car’s OMV. Despite this increase, Singapore’s wealthy residents continue to purchase high-end cars due to the country’s strong economy. In fact, Singapore has the highest percentage of millionaires per capita in the world, with one in every 34 residents having at least one million US dollars in disposable wealth.

As a writer, what caught my attention was how easily the wealthy are shrugging off the higher taxes, and their continued demand for high-end vehicles. It seems that for some, a mere 15% increase in the ARF is not significant enough to deter them from buying their dream car. In fact, they may even view it as a status symbol.

It is worth noting that while BMW and Mercedes are experiencing a boom in Singapore, the global car market has been struggling due to the Covid-19 pandemic. However, as countries begin to recover, it may be interesting to see if sales of high-end cars will continue to grow.

In conclusion, the article highlights the resilience of Singapore’s wealthy residents and their ability to continue purchasing luxury cars despite higher taxes. This topic is important because it sheds light on the unyielding demand for high-end vehicles in certain parts of the world, despite a global pandemic and economic uncertainty.