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The Ministry of Communications
will be introducing the Electronic Road Pricing
(ERP) system this year. It will commence on 1
April 1998 on the East Coast Parkway (ECP), and
would be phased in to other parts of Singapore
over the next two years. In conjunction with the
introduction of the ERP, the vehicle tax structure
will be rationalised and a package of road tax
rebates will be given.
The changes in road tax structure
and the road tax rebate package will result in
a revenue loss of about $1 billion for the Government
for the next 5 years. This revenue loss will be
partly offset by ERP revenue and additional revenue
from the release of more COEs over the next 3-5
years. Overall, the Government expects to achieve
revenue neutrality for this exercise in about
8 years. Details of the ERP implementation plan,
the road tax rebate package and the new vehicle
tax structure will be announced by the Minister
for Communications next week. |
