SINGAPORE – Revenue from certificates of entitlement (COEs) and vehicle registration taxes for the financial year ended March 31, 2019, will shrink by $1.1 billion to among their lowest levels in recent years.
According to the Budget statement, Singapore’s operating revenue for the year has been revised 0.2 per cent lower, to $74.7 billion.
The decrease was partly because of lower-than-expected collections from motor vehicle taxes and vehicle quota premiums.
Motor vehicle tax collections are estimated to be $2.5 billion – $0.6 billion or 20.5 per cent lower than the budgeted estimate.
This is due to the fewer-than-projected registrations, which pulled down Additional Registration Fee collection, the main car tax.
On top of that, more cars qualified for tax breaks under the Vehicular Emissions Scheme (VES), which metes out rebates and surcharges based on a car’s emission levels.
Revenue from COE was estimated at $2.9 billion – $0.5 billion or 15.1 per cent lower than the budgeted estimate.
This was down to the smaller-than-projected COE quota.
COE supply has been continuously minimising because of the cyclical nature of the quota system, as well as more motorists deciding to hold on to their cars beyond 10 years.
In comparison, the actual FY2018 revenue from COEs was $3.62 billion, while revenue from vehicle taxes was $2.62 billion.
Looking ahead, COE collection for FY2020 is projected to shrink further down to $2.64 billion, while revenue from vehicle taxes is expected to fall to $2.27 billion.
Expenditure for transport for FY2020 is expected to increase by $0.7 billion or 7.1 per cent, fuelled by MRT projects.
Source: Straits Times
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