Vehicle-related taxes make up 8% of government revenue

[Alheych]

I would like to share an interesting observation with everyone, this is probably old news to many MCFers, but I really don't wish to start a new discussion about the necessity of the COE or ERP, enough threads have been opened for them.

 

According to the Budget 2013 website, vehicle quota premiums (ie COE) and motor vehicle related taxes (road tax, ERP etc) contribute to 4% of the government's revenue each. That means altogether, vehicle-related taxes make up 8% of the government's income every year!

 

 

Now I'm no tax expert and I don't how much vehicle taxes contribute to government revenues in other countries (maybe there'a tax accountant here who can contribute?), but personally, I find 8% quite high for anywhere.

 

The government probably didn't start out with the intention to get so much tax from vehicles, but as they tried to curb vehicle population and ease congestion, they end up collecting more and more and found it to be a convenient source of income. And when you can count on that source for next year's budget, it's natural that you might not want to disturb this fat goose.

 

My real question is this: has collecting so much money been an effective way to manage vehicular growth? Personally, I think we've been put on a path where we cannot afford to cease the COE and ERP, or all hell will break loose when everyone gets easy access to a car, when there are not enough car parks and not enough lanes. We'll become a Bangkok or a KL. And if an alternate government does take power, they may not want to let go of this fat goose even if they know it's not been effective.

 

What do you think?

[Acewin]

I would like to share an interesting observation with everyone, this is probably old news to many MCFers, but I really don't wish to start a new discussion about the necessity of the COE or ERP, enough threads have been opened for them.

 

According to the Budget 2013 website, vehicle quota premiums (ie COE) and motor vehicle related taxes (road tax, ERP etc) contribute to 4% of the government's revenue each. That means altogether, vehicle-related taxes make up 8% of the government's income every year!

 

 

Now I'm no tax expert and I don't how much vehicle taxes contribute to government revenues in other countries (maybe there'a tax accountant here who can contribute?), but personally, I find 8% quite high for anywhere.

 

The government probably didn't start out with the intention to get so much tax from vehicles, but as they tried to curb vehicle population and ease congestion, they end up collecting more and more and found it to be a convenient source of income. And when you can count on that source for next year's budget, it's natural that you might not want to disturb this fat goose.

 

My real question is this: has collecting so much money been an effective way to manage vehicular growth? Personally, I think we've been put on a path where we cannot afford to cease the COE and ERP, or all hell will break loose when everyone gets easy access to a car, when there are not enough car parks and not enough lanes. We'll become a Bangkok or a KL. And if an alternate government does take power, they may not want to let go of this fat goose even if they know it's not been effecti

Since govt having so much from vehicle related tax, they should start to use the revenue to built double deck highway for PIE/CTE to ease the congestion.

[Banz86]

Wow.. I would say 8% as for our Singapore's GDP is really very high revenue. But from the current curbs imposed by the new regulations, you can see that this percent will increase substantially. With in release of more ERPs within next year, this growth will increase again.

 

But nevertheless, with all the highway expansion and road resurfacing done by the government, they have at least done something using that amount of money. What I do not agree with is still the limited parking around the central areas and even now, the HDB parking.

 

There is still an increase of vehicles which can be especially felt during peak hours. I think the priority now for the government is to reduce the congestion and increase parking with that revenue.

[ChickenMob]

Does that includes fines from traffic offences? should be more that that ba.......

[WTF]

I thot it will be higher than that........everyday (except Sundays and PHs) ERP $ coming in and every 2 weeks COEs' too......

Edited October 12, 2013 by WTF

[Jokerd]

Vehicle Quota Premiums, that's COE right? 4% of revenue

 

Anyway from the budget 2013 website http://www.singaporebudget.gov.sg/budget_2013/revenue_expenditure/toc.html

 

Account Code B40

Revenue Item MOTOR VEHICLE TAXES

Actual FY2011 1,919,598,555

Estimated FY2012 1,577,353,000

Revised FY2012 1,764,289,000

Estimated FY2013 1,550,736,000

Change over -213,553,000

FY2012 -12.1

 

So the goverment made almost 2 billion from motor taxes, can't find for "Vehicle Quota Premiums" on the site but there's a licence for Transport and Communication line which is 2.4b, I wonder if this is it

 

(Also note that there's a $38m revenue from traffic fines)

[Nullifi3d]

With all that money, dammit i say bring back the bendy buses!

[Alheych]

yes vehicle quota premiums means COE.

 

traffic offence fines, i think those are paid to HDB, URA, traffic police or other relevant agencies, so they go into the consolidated fund of the current government, which then distributes them for use in next year's budget again, until this term of government runs out. it would be a bit weird to say that fines contribute to your GDP as well, wouldn't it?

 

Vehicle Quota Premiums, that's COE right? 4% of revenue

 

Anyway from the budget 2013 website http://www.singaporebudget.gov.sg/budget_2013/revenue_expenditure/toc.html

 

Account Code B40

Revenue Item MOTOR VEHICLE TAXES

Actual FY2011 1,919,598,555

Estimated FY2012 1,577,353,000

Revised FY2012 1,764,289,000

Estimated FY2013 1,550,736,000

Change over -213,553,000

FY2012 -12.1

 

So the goverment made almost 2 billion from motor taxes, can't find for "Vehicle Quota Premiums" on the site but there's a licence for Transport and Communication line which is 2.4b, I wonder if this is it

 

(Also note that there's a $38m revenue from traffic fines)

 

[Firecracker]

I would like to share an interesting observation with everyone, this is probably old news to many MCFers, but I really don't wish to start a new discussion about the necessity of the COE or ERP, enough threads have been opened for them.

 

According to the Budget 2013 website, vehicle quota premiums (ie COE) and motor vehicle related taxes (road tax, ERP etc) contribute to 4% of the government's revenue each. That means altogether, vehicle-related taxes make up 8% of the government's income every year!

 

 

Now I'm no tax expert and I don't how much vehicle taxes contribute to government revenues in other countries (maybe there'a tax accountant here who can contribute?), but personally, I find 8% quite high for anywhere.

 

The government probably didn't start out with the intention to get so much tax from vehicles, but as they tried to curb vehicle population and ease congestion, they end up collecting more and more and found it to be a convenient source of income. And when you can count on that source for next year's budget, it's natural that you might not want to disturb this fat goose.

 

My real question is this: has collecting so much money been an effective way to manage vehicular growth? Personally, I think we've been put on a path where we cannot afford to cease the COE and ERP, or all hell will break loose when everyone gets easy access to a car, when there are not enough car parks and not enough lanes. We'll become a Bangkok or a KL. And if an alternate government does take power, they may not want to let go of this fat goose even if they know it's not been effective.

 

What do you think?

Tks for sharing. That's an astounding statistic. I don't see the possibility of any government foregoing this steady revenue stream. Just look at what's happening in the US now with bankrupt states and risk of credit defaults.

[Civic6228]

Tks for sharing. That's an astounding statistic. I don't see the possibility of any government foregoing this steady revenue stream. Just look at what's happening in the US now with bankrupt states and risk of credit defaults.

 

The pie chart is showing the figures for Y2011, if the chart is based on the Y2012/Y2013, would it be different ?

[Chucky2007]

Wow 8%! 大嘴青 bug fat bonus!

 

The pie chart is showing the figures for Y2011, if the chart is based on the Y2012/Y2013, would it be different ?

at least 10-12% in 2012,2013

[ChickenMob]

But those departments are always telling you that they made a loss from upgrading and improvement projects..

[Evillusion]

But those departments are always telling you that they made a loss from upgrading and improvement projects..

tell u a secret....dont tell anyone....to them collecting lesser from the projected income is a loss!

[Vid]

LKY "What's wrong with collecting more money?"

[Simplecar]

a positive Budget is good for SGP. Many HH have gotten rebates and handouts from this surplus budget. When Budget Day arrives, people are waiting for their goodies.

 

How many countries can do that?

[Jman888]

Singapore has no other resource, taxes become the main source, not many countries can think of or able to generate income from selling car (better than the car salesmen)

[Xefera]

Since govt having so much from vehicle related tax, they should start to use the revenue to built double deck highway for PIE/CTE to ease the congestion.

 

They are already doing that by "upsizing" the major highways and building a new N-S highway to accommodate peak hours traffic.

 

the only tangible way is to work the sums of LTA tender projects against collected revenue to find out if much of the monies are channelled into faciliting better road conditions

[Maseratigood]

LKY "What's wrong with collecting more money?"

El Kaye Whye worries we all cant handle this TRUTH, that's why they use COE, ARF, ERP, etc etc to sugar-coat the TRUTH