Additional Surcharge on Certificates of Entitlement for Owners Purchasing Second Vehicle or More

Debated in Parliament on 1 Feb 2021.

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Zhulkarnain Abdul Rahim asked if the Ministry would impose an additional surcharge on Certificates of Entitlement for owners buying a second or subsequent vehicle.
Ong Ye Kung responded that such a surcharge is unlikely to promote cleaner vehicles and would function more as a wealth tax, posing policy challenges.
He noted that second-vehicle buyers might have genuine needs, such as large families, and that loopholes could arise, necessitating complex rules.
The Minister emphasized that general incentives for cleaner vehicles and surcharges for pollutive vehicles are more effective than linking surcharges to vehicle ownership numbers.
He concluded that adding rules for second-vehicle surcharges would complicate the COE system without effectively advancing environmental goals.

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Zhulkarnain Abdul Rahim

Mr Zhulkarnain Abdul Rahim asked the Minister for Transport apart from higher surcharges and increased rebates to promote cleaner and electric vehicles, whether the Ministry will consider an additional surcharge upon certificates of entitlement for owners purchasing their second vehicle or more.

Ong Ye Kung

Our assessment is that an additional surcharge on owners purchasing their second vehicle will not likely have any impact in terms of promoting cleaner vehicles. General incentives and surcharges on cleaner or pollutive vehicles respectively, without linking to the number of vehicles owned by the buyer, will be more effective.

The objective of any surcharges on second vehicles is more like a wealth tax. But it will be a policy fraught with problems. It is difficult to judge when a second-time buyer is less deserving than a first-time buyer. For example, a bigger family with many children and grandparents may genuinely need more than one car. There will also be loopholes, such as buyers registering the car in the name of another family member. We will have to introduce many more rules, which would add to the complexities of the COE system.

Summary written by AI (learn more)

Zhulkarnain Abdul Rahim asked if the Ministry would impose an additional surcharge on Certificates of Entitlement for owners buying a second or subsequent vehicle.
Ong Ye Kung responded that such a surcharge is unlikely to promote cleaner vehicles and would function more as a wealth tax, posing policy challenges.
He noted that second-vehicle buyers might have genuine needs, such as large families, and that loopholes could arise, necessitating complex rules.
The Minister emphasized that general incentives for cleaner vehicles and surcharges for pollutive vehicles are more effective than linking surcharges to vehicle ownership numbers.
He concluded that adding rules for second-vehicle surcharges would complicate the COE system without effectively advancing environmental goals.

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Additional Surcharge on Certificates of Entitlement for Owners Purchasing Second Vehicle or More | PAPERCUTS

Additional Surcharge on Certificates of Entitlement for Owners Purchasing Second Vehicle or More

Debated in Parliament on 1 Feb 2021.

Summary written by AI (learn more)

Zhulkarnain Abdul Rahim asked if the Ministry would impose an additional surcharge on Certificates of Entitlement for owners buying a second or subsequent vehicle.
Ong Ye Kung responded that such a surcharge is unlikely to promote cleaner vehicles and would function more as a wealth tax, posing policy challenges.
He noted that second-vehicle buyers might have genuine needs, such as large families, and that loopholes could arise, necessitating complex rules.
The Minister emphasized that general incentives for cleaner vehicles and surcharges for pollutive vehicles are more effective than linking surcharges to vehicle ownership numbers.
He concluded that adding rules for second-vehicle surcharges would complicate the COE system without effectively advancing environmental goals.

Questions identified by AI (learn more)

Full Transcript

Zhulkarnain Abdul Rahim

Ong Ye Kung

Summary written by AI (learn more)

Zhulkarnain Abdul Rahim asked if the Ministry would impose an additional surcharge on Certificates of Entitlement for owners buying a second or subsequent vehicle.
Ong Ye Kung responded that such a surcharge is unlikely to promote cleaner vehicles and would function more as a wealth tax, posing policy challenges.
He noted that second-vehicle buyers might have genuine needs, such as large families, and that loopholes could arise, necessitating complex rules.
The Minister emphasized that general incentives for cleaner vehicles and surcharges for pollutive vehicles are more effective than linking surcharges to vehicle ownership numbers.
He concluded that adding rules for second-vehicle surcharges would complicate the COE system without effectively advancing environmental goals.

Questions identified by AI (learn more)

Additional Surcharge on Certificates of Entitlement for Owners Purchasing Second Vehicle or More

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Questions Identified

Full Transcript

Zhulkarnain Abdul Rahim

Ong Ye Kung

Summary

Questions Identified

Additional Surcharge on Certificates of Entitlement for Owners Purchasing Second Vehicle or More

Summary

Questions Identified

Full Transcript

Zhulkarnain Abdul Rahim

Ong Ye Kung

Summary

Questions Identified