For individuals in Singapore who wish to buy more than one car in Singapore may need to shell out more cash on top of their Certificate of Entitlement (COE). This is what Transport Minister Lui Tuck Yew said to the reporters during a visit of the Marina Coastal Expressway project site last Thursday. According to him, this move will distribute car ownership more evenly, given the limited COE supply.
Another areas that will be looked into improving the current COE policy is the better classifications of mass market vs high end models and reclassification of categories which will be factored by engine power.
The current buying trend has tipped heavily towards these ‘high end’ models , making up more than a third of the total Category A registrations – compared to less than seven percent in year 2010. The aim is to refine the categorisation of Category A and B COE.
As exampled by Mr Lui: “Models such as Mercedes C180 Kompressor and Audi A1 have an open market value and engine power that is significantly higher than those of more mass-market models such as Toyota Corolla Altis and Honda City.”
It was said that new criteria such as engine power (which determines the performance of the car) may be introduced to better differentiate Category A from Category B.
Mr Lui recognizes that there are downsides to such a policy like:
1.) Some owners may find a work-around by registering the second car onwards in the name of a relative or family member.
2.) If such policy implemented, the surcharge will not apply to all existing multiple-car owners. Commercial vehicles and motorcycles will also not be affected.
The government will begin seeking views and opinions from the public and major industry players, before a decision is made later this year.
