Tax break mitigates diesel duty hike - but cushion is temporary

Singapore

TRANSPORT and logistics companies are thankful for the diesel road tax rebate to help mitigate the unexpected hike in diesel excise duty announced in Monday's Budget. But DBS economist Irvin Seah has cautioned businesses not to rely too much on relief measures, as they're temporary.

Analysts including Mr Seah also warned that the latest salvo against diesel use - excise duty was doubled to S$0.20 a litre - may not be the last. They kept to a long-term view of the government's bid to lower diesel use here, even as some of the tax rebates are set to expire down the road.

The rise in volume-based diesel duties - which were introduced just two years ago - was sweetened with permanent cuts in the annual special tax for diesel cars and taxis. Buses and …