I REFER to recent letters on the use of off-peak cars on Saturdays and the entry of foreign vehicles into Singapore on Saturdays (Dec 5 and 10).

The vehicle entry permit and off-peak car are separate schemes serving different objectives. The vehicle entry permit scheme aims to regulate the entry of foreign-registered vehicles into Singapore and takes into consideration the need to facilitate tourism, which helps boost the economy and benefits Singapore as a whole. Under the scheme, foreign vehicles are required to pay for a vehicle entry permit for entry and stay in Singapore between 2am and 5pm on weekdays (excluding public holidays and school holidays).

The off-peak car scheme offers Singapore motorists an option to own a car at lower costs if they are prepared to use the cars sparingly. Off-peak car owners enjoy a significant upfront tax rebate of $17,000 and an annual discount of $800 on the car's road tax, subject to a minimum road-tax payment of $50 per year. These tax concessions take into consideration the restricted periods of use - 7am to 7pm on weekdays and 7am to 3pm on Saturday. This works out to 150 day licences annually at $20 per day, on top of free use of off-peak cars 63 days a year on Sundays and public holidays.

These tax concessions are linked to the restricted hours of use for vehicles under the off-peak car scheme. Those who want to use their off-peak cars on Saturdays during the restricted periods can do so by displaying a valid day licence of $20. Conversely, those who do not will enjoy the tax concession. If we were to revise the use restrictions on off-peak cars, the tax concessions will also have to be adjusted accordingly. We understand some off-peak car owners welcome shortening the restriction hours on Saturdays and weekdays, but not all may agree to a reduction in the tax concession they enjoy in exchange for this benefit. On balance, by continuing with the present scheme, off-peak car owners stand to benefit from higher tax rebates.

We thank the writers for their feedback and the opportunity to clarify the situation.

Geoffrey Lim
Deputy Director
Land Transport Authority

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This article was first published in The Straits Times on Dec 12, 2008.

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