Revisions to Road Usage Charges and COE System with New Island-wide ERP System

Er Dr Lee Bee Wah asked the Minister for Transport with the proposed 2020 island-wide ERP system (a) whether this will result in a system where ERP is based on road usage during office hours; (b) if so, whether there are plans to review the annual road tax and COE system to offset any additional costs to motorists under the new system; and (c) what is the implication for transport operators of goods lorries, taxis, movers and delivery businesses.

Madam, while the next generation Electronic Road Pricing (ERP) system allows for island-wide coverage, the current policy intent is to price only congested roads. The technology of the new system will allow us to implement this congestion pricing on a distance-travelled basis, which will be fairer to motorists. For example, motorists who travel the full stretch of a congested road can be charged more than those who travel, say, only a part of it. It is, however, too early to talk about its impact on different motorists and if we should adjust any existing tax policy.