Through the Land Transport Authority (LTA), Transport Minister Khaw Boon Wan doubled road tax collection for the Electronic Road Pricing (ERP) gantry at Ayer Rajah Expressway from S$1 to S$2 starting May 8.
The LTA however claimed that the increase in charges will alleviate traffic congestion at the expressway which has an average speed of 30km/h during peak hours. Although there is no statistic provided that ERP gantries improve traffic flow, the government was adamant on constructing ERP gantries:
“ERP gantries were constructed as part of the expressway to provide the option of road pricing should traffic conditions along the north-east corridor worsen with future development.”
Another lucrative route at Tampines Expressway, a new ERP gantry will also commence operations collecting S$2 per vehicle. The ERP increases will likely add on another S$10 million a year to the average yearly collection of S$150 million in ERP tax revenue.
A new GPS-based ERP system costing S$556 million in construction will be implemented by 2020, allowing the government to collect ERP tax revenues without building ERP gantries and also track the movements of all Singapore vehicles.