Transport Minister Raymond Lim on Thursday rejected Opposition MP Low Thia Khiang's accusation that the purpose of the Electronic Road Pricing (ERP) scheme was to generate revenue and 'squeeze money out of car owners'.

That's a 'popular' assumption which 'flies against the facts', said Mr Lim.

When ERP was introduced, several charges were reduced. They include the Additional Registration Fee (ARF) on cars, excise duty and road taxes.

In all, they add up to $1.2 billion in revenue foregone and this recurs every year, he said during the debate on his ministry's budget on Thursday.

In comparison, the current revenue from ERP charges is about $100 million, he added.

Later, when Mr Low's suggested again that the expansion of the ERP scheme would 'benefit and enrich' the Government's coffers, Mr Lim trotted out more figures.

Against the $70 million projected from additional ERP charges this year, the Government will forgo some $110 million annually from the reduction of road tax, he said.

Added the Minister: 'Since 1998, every time we have adjusted the ERP system and relied more on usage charges, we have brought down quite significantly the vehicle ownership taxes.'

Read the full story in Friday's edition of The Straits Times.