Tweaking Road Tax Regime to Encourage Installation of More Safety Features when Purchasing Higher Engine Capacity Cars
- Assoc Prof Jamus Jerome Lim questioned if higher road taxes on larger engines deter buyers from choosing cars with more safety features and suggested exemptions for private hire cars to encourage safety upgrades.
- Transport Minister Ong Ye Kung explained that road tax is progressive based on engine capacity to target luxury vehicles, with no proven link between engine size and safety features.
- The Ministry has no plans to exempt private hire cars with added safety features, as all vehicles must meet existing safety standards before registration.