Will the new ERP see the end of any current taxes?

An ERP gantry at Havelock Road.
An ERP gantry at Havelock Road.PHOTO: ST FILE

The motoring public - which includes both private and commercial users - must be made fully aware of the new electronic road pricing (ERP) system before its implementation next year (New ERP system raises many questions, June 20; Shift to new ERP system starts next year with IU swop, June 17).

While the new ERP system may meet the car-lite objective and is supposedly fairer for road users, it seems to benefit those with deep pockets.

The new pay-as-you-use ERP system will, however, raise costs for businesses, which will then look to pass the burden on to consumers.

There are currently several types of taxes imposed to deter car ownership, including the Additional Registration Fee, excise duty, goods and services tax, road tax and certificate of entitlement.

Is the Land Transport Authority considering abolishing any of the above taxes once the new ERP system is in place?

Such policies will make car ownership even more of a luxury, open only to the privileged few.

Taim Oon Chew

A version of this article appeared in the print edition of The Straits Times on June 28, 2019, with the headline 'Will the new ERP see the end of any current taxes?'. Print Edition | Subscribe