I refer to the report “Petrol duty up; one-off road tax rebate for drivers” (Feb 24).
Although the tax rebate offsets part of the increased petrol duty, it is only a one-off rebate, while motorists will continue to pay more for petrol.
In his Budget speech, the Finance Minister cited the falling oil prices.
However, oil prices fluctuate according to market forces.
Oil prices have crept up by 30 per cent since January, to about US$60 (S$81.60) a barrel, which will affect the cost of petrol.
If prices return to US$100 per barrel, that means the increase in the cost of petrol would be twofold, from the petrol tax and oil prices.
Singapore already has a high petrol tax, with the likes of Turkey, Netherlands and the United Kingdom leading the way in Europe.
The cost of owning a car here is also expensive, with registration fees, excise duty, Certificate of Entitlement, parking charges and, now, higher petrol duties.
People such as insurance and property agents would still need to drive frequently because of the nature of their job.
Since there are various measures in place — such as the Electronic Road Pricing and a satellite-based version soon to track distances — to curb car usage, why the need for extra petrol duty hikes?
The other reason cited is to reduce carbon emissions. But there has been the Carbon Emissions-Based Vehicle Scheme since January 2013.
And what about diesel vehicles, which have stricter Euro V standards, but are carbon emitters too? There is no hike in diesel tax.
The Government should at least plough back more in road tax rebates to motorists since one reason for the petrol duty hikes is to reduce carbon emissions.
Seamless connectivity in public transport, not hiking the petrol duty, is the long-term solution in any case. Until the new MRT lines are completed, it will be hard for people to give up their cars.
The rise in petrol prices due to higher duties will cause our headline inflation and Consumer Price Index to rise too.
Would the Monetary Authority of Singapore adjust the Singapore Dollar trading band so that imported oil is cheaper?
Instead of raising petrol duties, the Government should have increased sin taxes on betting, alcohol and cigarettes, which are worse than carbon emissions.
Although the tax rebate offsets part of the increased petrol duty, it is only a one-off rebate, while motorists will continue to pay more for petrol.
In his Budget speech, the Finance Minister cited the falling oil prices.
However, oil prices fluctuate according to market forces.
Oil prices have crept up by 30 per cent since January, to about US$60 (S$81.60) a barrel, which will affect the cost of petrol.
If prices return to US$100 per barrel, that means the increase in the cost of petrol would be twofold, from the petrol tax and oil prices.
Singapore already has a high petrol tax, with the likes of Turkey, Netherlands and the United Kingdom leading the way in Europe.
The cost of owning a car here is also expensive, with registration fees, excise duty, Certificate of Entitlement, parking charges and, now, higher petrol duties.
People such as insurance and property agents would still need to drive frequently because of the nature of their job.
Since there are various measures in place — such as the Electronic Road Pricing and a satellite-based version soon to track distances — to curb car usage, why the need for extra petrol duty hikes?
The other reason cited is to reduce carbon emissions. But there has been the Carbon Emissions-Based Vehicle Scheme since January 2013.
And what about diesel vehicles, which have stricter Euro V standards, but are carbon emitters too? There is no hike in diesel tax.
The Government should at least plough back more in road tax rebates to motorists since one reason for the petrol duty hikes is to reduce carbon emissions.
Seamless connectivity in public transport, not hiking the petrol duty, is the long-term solution in any case. Until the new MRT lines are completed, it will be hard for people to give up their cars.
The rise in petrol prices due to higher duties will cause our headline inflation and Consumer Price Index to rise too.
Would the Monetary Authority of Singapore adjust the Singapore Dollar trading band so that imported oil is cheaper?
Instead of raising petrol duties, the Government should have increased sin taxes on betting, alcohol and cigarettes, which are worse than carbon emissions.
