CERTIFICATE OF REGISTRATION OF BUSINESS FIRMS (Renewal fee)

Mr Chiam See Tong asked the Minister for Finance, in regard to renewal fees of Certificates of Registration of Business Firms, what is the reason for those who pay by Giro paying less (i.e. $75) and those who pay by cash paying more (i.e. $105).

Dr Richard Hu Tsu Tau: Mr Speaker, Sir, the differential fee structure for the renewal of Certificates of Registration for Business Firms was implemented on 1st April 2000 to reflect the different costs of processing the different modes of payment.

Before 1st April, the annual renewal fee was $25. This rate has remained unchanged since 1974. As a result of increasing costs over the years, the fees for renewal by cash and cash equivalents had to be increased to $105 for three years to reflect the higher operational costs. If, however, renewals are done by GIRO, the processing costs are lower. Therefore, MOF is able to pass on the cost savings to the business firms, and keep the renewal fees unchanged at $75 for three years, or at $25 per year.

Mr Chiam See Tong: Sir, people are asking why there is such a big differential rate. When you pay by GIRO, it is only $75 and when you pay by cash, it is $105. So they are asking: as far as the registration of business firms is concerned, cash payment does not have the same value as paying by GIRO.

Dr Richard Hu Tsu Tau: By paying cash, you require someone, a clerk, at the counter to receive and process the cash. For GIRO, you do it by just pressing a button. Surely, the difference is quite significant, in terms of cost processing. Lower cost of electronic processing is not only applicable to business registration but to other activities where you are moving away from counter services to electronic services.