The LTA said the hike was necessary to keep up with administrative costs. - ST FILE
SINGAPORE (The Straits Times/Asia News Network): The cost of owning a vehicle is set to be even higher with the Land Transport Authority (LTA) raising vehicle-related fees from Dec 19.
In a letter sent on Dec 5 to motor traders, which was obtained by The Straits Times, the LTA said 25 fees and charges will rise from Dec 19.
They include fees for vehicle registration as well as those for certificate of entitlement (COE) transfers, vehicle-type approvals and vehicle recall notifications.
LTA said the hikes were necessary to keep up with administrative costs, adding that the last revision was in 2017.
Most fees will be increased by between 10 and 25 per cent, with the vehicle registration fee seeing the sharpest spike at 59 per cent.
This fee, which is payable each time a new vehicle is registered for use in Singapore, will go up from S$220 to $350.
It was raised periodically over the years. The fee was $140 in 2000 and then increased to $220 in 2017 – a 57 per cent hike.
For motorcycles, the registration fee was $5 before 1998.
Given that 45,000 to 125,000 new vehicles are registered each year, the increase in the registration fee alone could add $5.9 million to $16.3 million to LTA’s revenue.
Motor traders were surprised by the LTA move, which comes as COE premiums remain at near record levels and core inflation stays high.
Neo Nam Heng, chairman of diversified motor group Prime, said: “Everything is increasing – from vehicle inspection to chicken rice. This will only add to costs, which may be passed on to consumers.”
Nicholas Wong, general manager of Honda agent Kah Motor, said: “I think in this period of high COE prices and poor market sentiment, it is bad timing for the increase.”
An ST report showed that car buyers have been shying away from showrooms amid sky-high COE prices, with scores of car sales staff leaving the industry as well.
Added Wong: “The most impactful is the increase in registration fee from $220 to $350 – this is a 59 per cent jump! I think it’s not justifiable, and adds to the inflation rate. Dealers will have to absorb these costs.”
Neo Tiam Ting, director of parallel importer Think One, said: “Under current costing, there would be no change. But moving forward, when dealers redo their costing, they will include this increase. Most dealers include it (the registration fee) in the packaged price.”
Norman Lee, a director at motorcycle retailer Race Werks, said: “Isn’t it ironic that most LTA services are already digitised, online or self-service.
“Yet, over the years, such costs have had to rise, instead of falling because of cost savings and increased productivity?”
