CERTIFICATES OF ENTITLEMENT (Exemption for vehicles used by voluntary welfare organisations)

Dr S. Vasoo asked the Minister for Communications whether he will consider granting exemption from Certificates of Entitlement for vehicles used by voluntary welfare organisations which are providing direct welfare services.

The Minister for Communications (Mr Mah Bow Tan): Mr Speaker, Sir, the Government recognises the vital role played by voluntary welfare organisations (VWOs) in helping the less fortunate members of our society, like the disabled, and the elderly sick.

Currently, some VWOs are exempted from paying registration fee and Additional Registration Fee for their vehicles. However, they still need to bid for Certificates of Entitlement (COEs). In view of appeals from Members of Parliament and VWOs themselves, and in recognition of the social service that they provide, my Ministry has reviewed the scheme in consultation with the Ministry of Community Development and has decided to exempt the VWOs' vehicles from COEs as well.

Only those vehicles which are directly involved in the provision of welfare services will qualify for this exemption. VWOs applying for vehicle tax and COE exemptions can submit their applications to the National Council of Social Service or to the Ministry of Community Development.

Dr S. Vasoo (Tanjong Pagar GRC): Could I ask the Minister whether he will also be extending the COE exemption to severely disabled persons who are recommended and supported by the voluntary welfare organisations themselves?

Mr Mah Bow Tan: I think the Member may be aware that, currently, there is already a scheme in place whereby disabled persons who are gainfully employed and are medically certified to be unable to take public transport and who also satisfy several other criteria, including an income criterion, are eligible for exemption from all the taxes as well as COEs.

Dr Vasoo: Sir, can the scheme be a bit more relaxed in the sense that those who are recommended by the voluntary welfare organisations themselves will get the assistance required?

Mr Mah Bow Tan: Sir, I believe the scheme is already very generous in the sense that the criteria are rather generous ones, and any person who fulfils the criteria with, of course, the strong recommendation from the VWOs themselves will be entitled to these exemptions.

Dr Lau Teik Soon (Thomson GRC): Sir, can I ask the Minister what is the income ceiling at the moment and whether it should be reviewed?

Mr Mah Bow Tan: At the moment, the income ceiling is, I believe, $3,000 per month.

Dr Lau Teik Soon: Could the Minister review this income ceiling in view of increased wages all round?

Mr Mah Bow Tan: Sir, I believe this income ceiling is rather generous. But if the Member has a case, we will certainly consider it.