The latest COE bidding result show an increase of S$3,199 to S$59,200 for Category A vehicles (under 1,600cc, typical non-luxurious cars) and S$2,081 increase to S$45,890 for commercial vehicles. The bidding result also revealed that there were 4,872 bids made, or 32.3% more than the allocated COE supply of 3,682.
The COE is a quota-based 10-year tax on vehicle ownership, which the government claimed to regulate demand. With the population increase resulting in higher vehicle demand, the Singapore government collect higher COE taxes, and other road-related taxes like road tax and ERP amounting to several billions each year.
Increase in COE prices often result in higher inflation of goods and services as businesses have to pay COEs for commercial vehicles like buses, trucks and taxis. Vehicle ownership in Singapore remains the costliest in the world as the landlocked country faces serious overpopulation problem.