The latest COE prices jumped 11% in less than a week after Senior Minister of State for Transport Lam Pin Min claimed in Parliament on Monday (Nov 6) that the new government policy to maintain 0% vehicle growth has no impact on COE prices.
Minister Lam Pin Min said on Monday: “The Government does not expect the move to reduce vehicle growth to affect the COE quota and therefore COE prices significantly. This is because the COE quota is largely determined by the number of vehicle de-registrations.”
Category A vehicles saw the largest increase at 11.6% from S$41,617 to S$47,112. The jump in COE prices will increase business costs and create a spiral of inflation on top of several tax increases introduced this year.
|Category||Current COE premium ($)||Previous COE premium ($)|
|A – Car (1600cc & below)||47,112||41,617|
|B – Car (above 1600cc)||57,414||49,996|
|C – Goods vehicle & bus||58,036||51,890|
|D – Motorcycle||5,502||4,903|
|E – Open||57,000||52,000|
COE, known as Certificate of Entitlement, is a tax that provides a vehicle ownership for a period of 10 years. Along with road tax, ERP tax and other indirect taxes, car ownership in Singapore is the most expensive in the world with car prices at least 5 times Australia’s. Each year, the Singapore government made at least S$3.7 billion (Budget 2015 figures) from collecting COE taxes alone.
The Singapore dictatorship resonate that COE is necessary to lower car population, but did not apply same rationale for population growth.