ROAD tax for vehicles and special tax for Euro-IV diesel cars are set to go down from July 1, said the Land Transport Authority on Thursday.

Owners of cars, motorcycles, taxis and commercial vehicles will pay 15 per cent lesser in road tax.

Those with Euro-IV diesel cars will also have their annual special tax revised.

Instead of paying the current four times of their road tax, they will pay $1.25 per cubic centimetre of their vehicle's engine capacity, subject to a minimum annual payment of $1,250.

The LTA said the revised rates will be indicated in road tax renewal notices and Giro payment schedules from June 9.