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SINGAPORE: Apart from increasing the number of Electronic Road Pricing gantries and reducing Certificate Of Entitlement (COE) quotas, a cash incentive could soon be introduced to encourage motorists to give up their cars.
The Ministry of Transport is studying the possibility of offering COE and Preferential Additional Registration Fee (PARF) rebates in cash instead of credit, to encourage greater use of public transport and manage vehicle population growth.
The idea of giving cash rebates was first raised during the recent Budget debate by MP Inderjit Singh. Over the next four to six months, the Land Transport Authority (LTA) will work with the Ministry of Finance to see if this is feasible, said Transport Minister Raymond Lim at the launch of the Land Transport Masterplan report on Sunday.
Pointing out that COE and PARF rebates were currently paid in credits that could only be used when buying another car, Mr Lim said: "The principle motivation behind this review is to provide incentives for someone who says 'I want to give up my car and I'm switching to public transport'".
In spite of past efforts to curb the vehicle population, the rate of increase has outstripped road development. The total vehicle population currently stands at 850,000.
When asked what would stop a person from using the cash rebate to buy another car, Mr Lim responded: "That can happen, I agree. That's why we need to study this carefully to see how best to do this."
Currently, PARF and COE rebates can be used to offset upfront vehicle taxes and fees when one registers a car, such as the PARF, the COE quota premium, the registration fee, and the $10,000 used-car surcharge.
A driver who deregisters his car before the COE expires will get a rebate on the quota premium paid, pegged to the number of months and day remaining on the COE, while PARF is computed based on the age of the car.
For example, a car deregistered nine years before the COE expires will receive $15,221, based on a paid premium of $16,897.
Most motorists opt to buy another car so they don't lose out on these credits.
LTA chief executive Yam Ah Mee said that the suggestion of cash rebates came up frequently during the LTA's feedback sessions with some 4,500 motorists over the past few months.
"If the rebate only used for buying another car, in terms of the number of cars on the road, it may still be the same or even more," he said.
Also launched on Sunday was LTA's Community Outreach Programme, which will involve 14 dialogue sessions with grassroots leaders from all constituencies over the next six months to discuss land transport policies and plans that could affect their communities.
Other outreach efforts include site visits and roadshows, as well as a community guide that will outline the initiatives detailed in the Masterplan. - TODAY/fa
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