CERTIFICATES OF ENTITLEMENT (Amount of money collected)

The following Question stood in the name of Mr Chiam See Tong -

Mr Chiam See Tong: To ask the Minister for Communications what was the total amount of money collected from 1st May 1990 to 28th February 1991 in respect of Certificates of Entitlement issued to (i) new motor vehicles and (ii) used motor vehicles.

Dr Lee Siew-Choh: Question No. 6, Sir.

The Minister of State for Communications (Mr Mah Bow Tan) (for the Minister for Communications): Mr Speaker, Sir, from 1st May 1990 to 28th February 1991, the Registry of Vehicles (ROV) collected a total of $180 million for Certificates of Entitlement, made up of $116 million from the registration of new vehicles and $64 million from the revalidation of existing vehicles.

During the same period, ROV collected $449 million in additional registration fees (ARF). This is $224 million less than the ARF collection of $673 million in the corresponding period of last year. The reduced ARF collection is due to two factors.

First, the reduction in ARF for cars, from 175% to 160% of the Open Market Value with effect from 1st November 1990, and the further reduction to 150% of Open Market Value from 1st February this year. The second reason is a reduction in the number of vehicles registered under the Quota System.

Dr Lee Siew-Choh: Sir, does the department make money out of the whole exercise?

Mr Mah Bow Tan: On the contrary, Sir, there was a reduction in the total collection as a result of this particular exercise.