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Written Reply by Minister for Transport Khaw Boon Wan to Parliamentary Question on Proposal for Relief on Motor Vehicle Depreciation Costs due to Reduced Motor Vehicle Usage

05 May 2020 In Parliament

Assoc Prof Walter Theseira asked the Minister for Transport in view that COVID-19 social distancing measures have greatly restricted motor vehicle use, whether the Minister will consider providing relief for motor vehicle depreciation costs through extending without charge the validity of existing COEs, road tax, and other relevant motor vehicle licences for a period commensurate with the impact of COVID-19 measures on motor vehicle usage.
Reply by Minister for Transport Khaw Boon Wan:  
1.     To mitigate the impact arising from COVID-19 and the circuit breaker, the Land Transport Authority (LTA) has already made adjustments to land transport services and charges. For instance, LTA has extended the inspection deadline for private car owners originally scheduled to have their cars inspected during this period. LTA has also extended the deadline for vocational drivers to submit their medical examination reports when renewing their vocational licenses. In both cases, the motorists can continue using their vehicles as long as they have valid insurance coverage and road tax. LTA has also ceased Electronic Road Pricing (ERP) at all gantries from 6 April 2020, in view of the reduction in traffic volume during this period.
2.     We have received requests to extend the validity period of the Certificate of Entitlement (COE), road tax and other relevant motor vehicle licences. However, private vehicles are still allowed on our roads for essential work or personal activities like getting groceries. The relevant COE, road tax and vehicle licensing costs will therefore continue to apply.
3.     The Government has introduced substantial support measures in the Unity, Resilience and Solidarity budgets to help businesses and households cope with the COVID-19 situation. We must remain prudent in how we use our limited fiscal resources as the pandemic may be long-drawn.