Singapore's Prime Minister to investigate Tesla CO2 tax
As we reported yesterday, Singapore has levied a $15,000 “carbon surcharge” on the first Model S sold in the country, despite the fact the Model S is electric. The story generated significant interest, and led Tesla CEO, Elon Musk to Tweet not long after the story was published that he had spoken to Singaporean Prime Minister Lee Hsien Loong, who had promised to “investigate the situation”. A spokesperson from the Prime Minister’s office confirmed yesterday that the conversation had taken place and that “various agencies” were looking into the matter, but added that it was too early to determine the outcome.

He wrote in a Facebook post: "We talked about new technologies and global trends, and Singapore's Smart Nation ideas. Elon Musk gave me a brief but exhilarating ride in the Tesla Model S P90D."

The P90D is a high-performance variant of the electric Model S, and is similar to the car that the LTA imposed a $15,000 surcharge on, the first electric car here to be given such a surcharge.

Various other electric or part-electric cars here are accorded tax rebates of up to $30,000.

Several countries also consider the Tesla Model S as environmentally-friendly, and grant its buyers various forms of tax breaks.

The owner of the Singapore car, Joe Nguyen, had posted online about the carbon surcharge, as well as the length of time (some seven months) it took for the vehicle to be approved and registered.

Mr Nguyen, 44, a senior vice-president with an Internet research firm, said it was " awesome" that Mr Musk had contacted PM Lee.

"I guess he met the prime minister a couple of weeks ago," he said. "Hopefully, something good comes out of it."

Member of Parliament Ong Teng Koon, who made a case for electric vehicles in Parliament in January, said given the need to reduce carbon emissions, Singapore should put greater focus on electric vehicles, since these vehicles typically have lower CO2 emissions (measured at the power station) than their conventional counterparts.

"From the government's perspective, this is a rare carbon emissions reduction policy where the abatement cost would be voluntarily borne by consumers... rather than being paid for by the government."

The LTA and Transport Ministry were not available for comment.