Vehicle-related taxes make up 8% of government revenue

[Hydrocarbon]

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)

 

Our government has to be one of the most profitable government in the whole world.. =P

[Maseratigood]

 

Our government has to be one of the most profitable government in the whole world.. =P

 

Profits And Profits..... what do you think?!

 

i mean.... people like her... senior minister of state for transport...

maybe nice to look at, but what does she add? when she talks, u know its a waste of time and makes your blood boil

 

i like it whenever such ppl appear on tv, i can go toilet, fetch a drink, change channel, scratch myself in in another room............. its break time!!!

 

Edited November 25, 2013 by Maseratigood

[Alheych]

digging up this old thread because with the 2014 budget, there are now new figures:

 

vehicle quote premiums make up 9.20% of government revenue in 2013, and is expected to make up 9.78% in 2014. that's $5.82 billion!

 

means for every $10 the government gets, almost $1 is from COEs! haven't take into account other motor vehicle taxes, which is another 3% or $1.36 billion.

 

http://www.todayonline.com/singapore/budget-2014-breakdown

 

[frenchfly]

Will coe crash back to 20000 levels

 

Past 2 years my friends been telling me that. Some say 2016. Now

[Wind30]

Is COE an effective way of curbing vehicle growth?

 

obviously yes right....

 

I guess the question is probably is COE the right way of allocating vehicle growth....

[Google]

Actually these revenue are not actual reflection of income that was collected but bear in mind, more like a loan, you can surrender the coe anytime and get back the balance. Imagine if everyone starts scrapping their COE, the govt may face temporary cash flow problem.

I was thinking, if COE is just a certificate which is a one time bidding, just remove the value once it is on the road. Because insurance company includes insurance premium for the certificate and the cost of vehicle which doesn't make sense. And with these revenue collected, can't it just be channel back to transport company which must be not listed as a requirement as these are public funds?

[Thaiyotakamli]

Actually these revenue are not actual reflection of income that was collected but bear in mind, more like a loan, you can surrender the coe anytime and get back the balance. Imagine if everyone starts scrapping their COE, the govt may face temporary cash flow problem.

I was thinking, if COE is just a certificate which is a one time bidding, just remove the value once it is on the road. Because insurance company includes insurance premium for the certificate and the cost of vehicle which doesn't make sense. And with these revenue collected, can't it just be channel back to transport company which must be not listed as a requirement as these are public funds?

If everyone return their coe, i wont follow them haha, best road empty no car

digging up this old thread because with the 2014 budget, there are now new figures:

 

vehicle quote premiums make up 9.20% of government revenue in 2013, and is expected to make up 9.78% in 2014. that's $5.82 billion!

 

means for every $10 the government gets, almost $1 is from COEs! haven't take into account other motor vehicle taxes, which is another 3% or $1.36 billion.

 

http://www.todayonline.com/singapore/budget-2014-breakdown

 

Singapore is the only organization where u dun need factory to build cars yet earn more than those manufacturers just using papers and ink

Is COE an effective way of curbing vehicle growth?

 

obviously yes right....

 

I guess the question is probably is COE the right way of allocating vehicle growth....

It is definitely an effective way, and the current high coe seems generating more revenue to the govt. If i were the govt, i would use all of the coe revenue to improve and expand our public transport.

 

So in 2016 do vote me, Thaiyotakamli from The Thai Party

[Thaiyotakamli]

Huat ahhh

Edited February 22, 2014 by Thaiyotakamli

[Alheych]

my whole point in starting this discussion was not to discuss whether COE is effective in curbing car ownership or congestion, enough has been said about it.

 

but really, what i'm thinking is, if this is such a steady flow of revenue for the government, how would any government (PAP or opposition) dare to slaughter it? can build don't know how many hospitals and schools already. $5.82 billion from COE in a year can pay for MCE's $4.3 billion cost with $1.52 billion spare change!

[Super7]

my whole point in starting this discussion was not to discuss whether COE is effective in curbing car ownership or congestion, enough has been said about it.

 

but really, what i'm thinking is, if this is such a steady flow of revenue for the government, how would any government (PAP or opposition) dare to slaughter it? can build don't know how many hospitals and schools already. $5.82 billion from COE in a year can pay for MCE's $4.3 billion cost with $1.52 billion spare change!

When COE revenues are used for building schools, hospitals, etc, these places can have an Honour List in the main lobby giving the names of car owners who paid thousands of dollars buying COEs and helped funding the construction. Imagine your name on the Honour List!!! Will you feel less painful coughing up your thousands for COE of your car?

 

Better still, RSAF's F 16 with your name painted on its nose or air to air missiles!!!

Edited February 22, 2014 by Super7

[Super7]

Is COE an effective way of curbing vehicle growth?

 

obviously yes right....

 

I guess the question is probably is COE the right way of allocating vehicle growth....

COE revenue is EASY MONEY for govt no matter how we look at it. Easy money leads to easy spending.

 

Current govt may not practise easy spending yet, but the temptation is always great. Therefore strong checks n balance cannot be dispensed with if we want to prevent easy spending!!!

[Achee]

my whole point in starting this discussion was not to discuss whether COE is effective in curbing car ownership or congestion, enough has been said about it.

 

but really, what i'm thinking is, if this is such a steady flow of revenue for the government, how would any government (PAP or opposition) dare to slaughter it? can build don't know how many hospitals and schools already. $5.82 billion from COE in a year can pay for MCE's $4.3 billion cost with $1.52 billion spare change!

Actually we should thank all these car buyers (or should it be car dealers?) who contributed to the high COE because without them our personal income taxes, GST have to be raised to finance the goodies dished out in Budget 2014.

[Alheych]

Actually we should thank all these car buyers (or should it be car dealers?) who contributed to the high COE because without them our personal income taxes, GST have to be raised to finance the goodies dished out in Budget 2014.

 

indeed. our personal income tax rate is already one of the lowest in the world. not many people realise that it takes a lot of money to run government programmes, and it takes a very prudent government to keep these policies afloat even with such low revenues from income tax. COE is a good "cheat code".

[Porche]

We have the lowest personal tax in the world, but if you include GST, COE, vehicle tax and lastly CPF. We r in fact have the most taxes. The ang mo comes here cos their country tax the wealthy more, here the middle class kanna most

[Eyke]

We have the lowest personal tax in the world, but if you include GST, COE, vehicle tax and lastly CPF. We r in fact have the most taxes. The ang mo comes here cos their country tax the wealthy more, here the middle class kanna most

u can dun buy car thereby avoid the related taxes mah

[Porche]

Don't buy car, u still have other taxes

[Benarsenal]

Something interesting I read recently: Should we go for high income tax or consumption tax?

 

Both are ways for Govts to earn money, both affect the people, but which is better? (Western countries usually hit hard on income tax)

 

Income tax is perceived to be 'fairer', because it is related to income (you earn more, you pay more). But some say it discourages progress, because people may not have the incentive to strive to earn more (to avoid paying more).

 

Consumption tax on the other hand can also be seen as 'fair', because it's a flat tax on everything for everyone. But proportionately it affects the less well-off the hardest, and can be perceived as rewarding the rich.

 

So, like that how?

[Super7]

Something interesting I read recently: Should we go for high income tax or consumption tax?

 

Both are ways for Govts to earn money, both affect the people, but which is better? (Western countries usually hit hard on income tax)

 

Income tax is perceived to be 'fairer', because it is related to income (you earn more, you pay more). But some say it discourages progress, because people may not have the incentive to strive to earn more (to avoid paying more).

 

Consumption tax on the other hand can also be seen as 'fair', because it's a flat tax on everything for everyone. But proportionately it affects the less well-off the hardest, and can be perceived as rewarding the rich.

 

So, like that how?

Be more aggressive with progressive income tax regime but not too extreme as to turn away high earners.

 

Higher consumption tax on luxury items, with expanded exemption list of essential items.