EFFECTS OF INCREASE IN ROAD TAX AND AD VALOREM DUTY ON PETROL

Dr Koh Lam Son asked the Minister for Communications and Information, Second Minister for Defence and Second Minister for National Development, since the increase of the ad valorem duty on petrol from 50% to 60% is a substantial increase in the cost of petrol to the motorists, whether this measure will (i) reduce the present road congestion and prevent it from getting worse, and (ii) reduce further the 7.3% growth of the car population in 1984.

The Minister for Communications and Information, Second Minister for Defence and Second Minister for National Development (Dr Yeo Ning Hong): Mr Speaker, Sir, the increase in road tax and ad valorem duty on petrol was only introduced earlier this month. It is too early to comment on its effect.

The previous increase in road tax and ad valorem duty on petrol in October 1983 brought the increase of cars from more than 13% in the early part of 1983 down to 7.3% in 1984.

Dr Koh Lam Son (Telok Blangah): Sir, can I ask the Minister what, in his view, is the most equitable system of car population control?

Dr Yeo Ning Hong: Mr Speaker, Sir, the subject is currently under debate in the Committee of Supply.