REDUCTION OF PETROL AND DIESEL COSTS

Mr Ong Kian Min asked the Minister for Finance whether, in line with its objective of reducing the cost of doing business in Singapore, the Government will consider reducing taxes on petrol and diesel and/or taking other measures to reduce pump prices of petrol and diesel.

Dr Richard Hu Tsu Tau: The Government is closely monitoring business costs. In June this year, a package of Off-Budget Measures aimed at reducing business costs was announced. Further cost-cutting measures, including all forms of Government taxes and levies, are being reviewed.

In the case of taxes on petroleum products, I should point out that the levying of excise duties is one of the measures used to curb excessive vehicle usage and minimise congestion on the roads. Any proposal to reduce duty on petrol would therefore have to take into account its impact on road usage. Electronic Road Pricing (ERP) has just been introduced and Government will need some time to monitor the new road usage and traffic patterns.