Petrol duties collected at fixed rates06 Dec 2007
MR THEODORE Yeo Guan Huat ('Consider reducing excise duty on petrol'; ST, Dec 3) assumed that petrol duties were pegged at 35 per cent of pump prices, and that rising pump prices translated into more taxes collected.
This is not the case. The petrol excise duty is set at a rate of $0.41 per litre for 92- and 95-octane petrol, and $0.44 per litre for petrol rated 97 octane and above.
Rising pump prices have no impact on petrol duties collected.
We thank Mr Yeo for his views.
POON HONG YUEN
DIRECTOR (ECONOMIC PROGRAMMES)
MINISTRY OF FINANCE