Govt considering imposing surcharge for second car, categorising COE based on engine power

The Government could possibly levy a surcharge on the second car owned by the same person in the future, as well as categorising cars based on engine power.

Speaking on the sidelines of a visit to the Marina Coastal Expressway on Tursday,Transport Minister Lui Tuck Yew said the authorities are looking at how to better delineate category A and B cars to separate mass market and luxury cars.He noted that last year, models commonly viewed as higher-end options such as Mercedes Benz and BMW made up more than a third of Category A registrations compared to less than 7 per cent in 2010.Buyers of mass market cars have thus had to compete with luxury car buyers. One new criteria the authorities is considering is engine power, he said.The Government is also looking at how to spread out car ownership more evenly, he said.One option it is considering is to levy a surcharge on those who want to buy more than one car.The public and industry players will be consulted before a decision is made later this year, he said. The consultation period will last for about two to three months.