ROAD TAX SURCHARGE ON CARS MORE THAN 10 YEARS OLD (Reasons)

The following Question stood in the name of Dr John Chen Seow Phun -

Dr John Chen Seow Phun: To ask the Minister for Communications what are the reasons for a surcharge of road tax on cars more than 10 years old irrespective of whether they are well kept or not and whether the 10-year period will be extended if cars are subjected to more regular and comprehensive inspections.

Mr Eugene Yap Giau Cheng (Mountbatten): Question No. 3, Sir.

The Minister of State for Communications (Mr Mah Bow Tan) (for the Minister for Communications): Mr Speaker, Sir, the objective of the road tax surcharge is to discourage owners from using their vehicles beyond 10 years. It would be invidious to try to decide which car should pay the surcharge on a case-by-case basis. There are too many imponderables - the actual mileage travelled, the quality of the car, the level of maintenance, etc. Any verdict is likely to be subjective, and could lead to abuse and endless disputes.

Our vehicle inspection statistics show that the age of a car, while not a perfect criterion, can serve as a practical proxy for the state of road-worthiness of vehicles. For example, in 1990, 20% of 8-year old cars failed their first time inspection as compared to 10% of 3-year old cars. For cars that were more than 10 years old, the percentage rose to 32%.

Cars which are 10 years and above are already required to go for more frequent inspections, once a year, while cars between three and 10 years old are required to undergo compulsory inspections once every two years. Inspections, however, cannot guarantee that the vehicle will always remain in the same condition as at the time when it passes the inspection. It is the responsibility of a vehicle owner to ensure that his vehicle is always in a good road-worthiness condition.

The surcharge has been effective in helping us maintain a younger vehicle population. Last year, 8,688 vehicles 10 years and above were scrapped compared with 6,721 scrapped in 1989.