OFF-PEAK CAR SCHEME

OFF-PEAK CAR SCHEME: * * *

2.

Assoc. Prof. Ong Soh Khim asked the Minister for Transport (a) what are the measures taken to ensure that off-peak cars (OPC) are used according to the regulations stipulated in the OPC scheme; (b) has the OPC scheme caused more traffic on Singapore roads; (c) will the Ministry consider scrapping the OPC scheme now that car prices and COE premiums are lower; and (d) will the Ministry consider reducing the upfront $17,000 rebate and the annual $800 discount on road tax in the OPC scheme.

Mr Yeo Cheow Tong: The Off-Peak Car (OPC) scheme was designed to provide car owners with the option of owning cars at significantly lower costs if they are prepared to use them sparingly. Under the scheme, OPC owners are given an upfront tax rebate of $17,000 and a flat $800 discount on road tax. In return, the use of OPCs is restricted to certain time periods.

To ensure that the OPC scheme is not abused, the Land Transport Authority (LTA) has been stepping up its enforcement efforts. The LTA took action against 244 cases of OPC violation* in 2004, compared to 48 in 2003. For 2005, up to the end of June, 268 cases of OPC violations have been booked. To deter OPC violations, the penalties are severe relative to OPC tax rebates and in comparison with the cost savings from not

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displaying valid day-licences. An offender can be fined up to $10,000 for using an OPC without displaying a valid day licence. For tampering with the day licence, the penalty is a fine not exceeding $20,000 or imprisonment not exceeding 12 months or both.

The OPC scheme continues to serve its objectives and there are no plans to discontinue it. Since its introduction in September 1994, the total OPC population has been increasing steadily, from about 450 at the end of 1995 to about 9,000 today. As OPCs fall within the total vehicle population quota allocated under our Vehicle Quota System, having more OPCs does not increase the total car population. In fact, having more cars registered as OPCs implies that there should be fewer cars on the road during the restricted periods.

The tax concessions provided to OPCs are tied to the restriction on usage, and is therefore the same regardless of the type or price of a car registered as an OPC. Hence, there is no need to adjust the tax rebates as car prices change.

• These refer to using an OPC without displaying a valid day licence during its restricted hours or altering/tampering with the day licence with the intention to cheat.

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