TRANSFER FEE OF SECOND-HAND CARS

Mr Low Thia Khiang asked the Minister for Transport what is the rationale for the Land Transport Authority's decision to charge second-hand car buyers a transfer fee of 2% of the vehicle's market value.

Mr Yeo Cheow Tong: A transfer fee is levied when a vehicle is transferred from one owner to another. It comprises two components - a small administrative fee and a tax. The administrative fee is $3 for motorcycles and $10 for all other vehicles.

The tax, which is also referred to as an Additional Transfer Fee, is set at 2% of the assessed value of the vehicle and is part of our national taxation framework. It goes into the Government's Consolidated Fund, which funds the various Government programmes for the benefit of all Singaporeans.