THE certificate of entitlement (COE) price today is unreasonably high and far exceeds the open market value (OMV) of registered vehicles, placing a greater burden on buyers with smaller pockets ("Current COE bidding system is 'most flexible way'"; yesterday).
Going by the Land Transport Authority's car registration costs for last month, the sum paid - inclusive of COE, the additional registration fee (ARF) and Customs duty - is between 2.3 and seven times that of the OMV.
Cars with lower OMVs bear a higher proportion of taxes, compared with cars of higher OMVs in the same COE category.
For Category A, for example, an owner registering a Mitsubishi Lancer will have to pay about seven times the OMV, as compared with about three times for an Audi A3.
For other forms of taxes, such as income and property, higher taxes are always placed on those in higher tax brackets. Why is it the reverse for car ownership?
Perhaps it's time to consider doing away with the COE system, so that the total amount payable when registering a car is proportional to the OMV. To make up for COE losses, the ARF could be increased.
Alvin Kuo Soon Siang
Going by the Land Transport Authority's car registration costs for last month, the sum paid - inclusive of COE, the additional registration fee (ARF) and Customs duty - is between 2.3 and seven times that of the OMV.
Cars with lower OMVs bear a higher proportion of taxes, compared with cars of higher OMVs in the same COE category.
For Category A, for example, an owner registering a Mitsubishi Lancer will have to pay about seven times the OMV, as compared with about three times for an Audi A3.
For other forms of taxes, such as income and property, higher taxes are always placed on those in higher tax brackets. Why is it the reverse for car ownership?
Perhaps it's time to consider doing away with the COE system, so that the total amount payable when registering a car is proportional to the OMV. To make up for COE losses, the ARF could be increased.
Alvin Kuo Soon Siang
