REVENUE INCREASES FROM MOTOR VEHICLES

Mr J.B. Jeyaretnam asked the Minister for Finance and Minister for Trade and Industry how much revenue he expects to raise from the increases in registration and licence fees for motor vehicles and in the tax on petrol before and after the income substitution effects take place and how the government intends to spend the extra revenue raised.

Dr Tony Tan Keng Yam: The additional revenue from the increases in road tax and registration fees is expected to be $26 million for FY 83 and $59 million for FY 84. The additional revenue from the increase in the tax on petrol is expected to be $57 million for FY 83 and $113 million for FY 84.

The additional revenue will be paid into the Consolidated Fund and used to finance overall Government expenditure for the provision of services as well as basic infrastructure and development projects.