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LTA seeks greater equity in COE system
The government is looking to change the current Certificate of Entitlement (COE) system to ensure greater equity among car buyers, said Transport Minister Lui Tuck Yew.
Speaking to reporters during a visit of the Marina Coastal Expressway project site Thursday morning, Lui said a surcharge may be imposed on individuals buying a second car or more, so as to distribute car ownership more evenly.
Authorities are also proposing a refinement of the current categorisation of small and big cars, according to media reports.
The COE categories may be tweaked such that buyers of mass-market cars need not compete directly with buyers of luxury cars, Lui reportedly said.
The minister noted that there was a greater number of car makes by luxury brands like Mercedes-Benz and BMW in Category A (below 1,600cc) last year.
For example, the Mercedes Benz A 180 BlueEFFICIENCY and the BMW 3 Series Sedan, with engine sizes of 1595cc and 1598cc respectively, would just narrowly miss being classified under Cat B.
Lui said that new criteria such as engine power may be introduced to better differentiate the two car types.
The LTA will be seeking views from the public and industry players in consultations next month, and intend to come to a decision later this year.
According to The Straits Times, a new electronic road pricing (ERP) system based on global navigation satellite systems may also be implemented to further manage congestion. Under the ERP2 — a working name — motorists will be charged for driving based on distance, and not only at certain points in their journey, as with the current system.
“This will be fairer and more equitable to motorists as the changes will be proportional to the distance they travel on a congested road, in other words, proportional to how much they actually contribute to the congestion,” Lui was quoted as saying.
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