Off-peak car scheme to get a tune-upThis definitely bodes well for the OPC scheme. I am just surprised that the government is finally making a move on extending the OPC hours limit on Saturday to free usage perhaps. This suggestion is finally been heeded by the government and I think it makes sense since there is less traffic congestion on Saturday and furthermore, the official working week is 5 days now.
Govt to replace paper permits, relook rebate system and restricted hours
By Christopher Tan, Senior Correspondent
IT COULD soon become more attractive for would-be car buyers to consider off-peak cars (OPCs), and for existing motorists to switch to such cars.
The Government will look into enhancing the scheme in three areas.
Firstly, the supplementary day licence, currently a cumbersome paper permit that is prone to tampering, will be replaced.
Head of the Government Parliamentary Committee for Transport Cedric Foo, a strong OPC advocate, suggested an electronic system like London's camera-based congestion charging system.
As street cameras are already widely deployed here, details of the cars can be readily captured when they are on the road. The owners can then pay up by cash or direct debit within 24 hours, Mr Foo suggested.
'Our OPC system must be made more robust and tamper-proof,' he said.
Transport Minister Raymond Lim concurs. He said in Parliament yesterday that the Land Transport Authority will look at how an electronic charging system can be applied.
Secondly, the Government will look into granting cash rebates to motorists who convert their normal cars to OPCs. This, Mr Lim said, will be more attractive an incentive than the current system, where car owners can realise the rebates only when they finally scrap their vehicles.
Lastly, the Government will relook the restricted hours that OPCs can ply without charge.
Currently, these red-plated cars can be used only from 7pm to 7am on weekdays, and after 3pm on Saturdays, and for the full day on Sundays and public holidays.
Over the years, the Government had received 'numerous feedback' from OPC owners, with many asking for free use for the whole of Saturdays.
Minister Lim hinted that free use for the whole of Saturdays could be possible, but there would be commensurate adjustments to the tax breaks that OPCs are accorded.
Today, OPCs get a one-off $17,000 rebate on their registration taxes.
Mr Lim said the OPC scheme 'is something we should encourage'.
'It provides an alternative and a lower-cost means for people to own cars, and as its name suggests, helps to alleviate peak-hour congestion on our roads,' he added.
He pointed out that there are about 42,000 OPCs today, eight times more than the 5,000 back in end-2005. They make up about 7.7 per cent of Singapore's car population.
Motor Traders Association president Tan Kheng Hwee said 'we look forward to more details regarding the improved OPC scheme'.
'We hope the announcement on OPC will be made soon,' she added. 'Otherwise, those who are considering an OPC may be unsure whether they should commit now or wait until the new scheme is announced.'
OPC owners welcome the proposed improvements. Student Cynthia Elizabeth Tang, 27, said the electronic charging system 'is a good move'. She said it would be more 'hassle-free' than today's paper coupon system.
'There have been times when I tore the wrong date, and it's $20 gone,' the owner of an off-peak Nissan Sunny said.
She also said extending the free use to full day on Saturdays would make the scheme more attractive to would-be owners - even if the $17,000 tax break is adjusted. 'It makes sense, as more people work a five-day week now,' she added.
However, given the low COE prices now, it would not be a good choice to buy a OPC car. This is because effectively, the car will have no scrap value. In short, you will not get any cash back if you scrap your car. Perhaps, I should elaborate on this subsequently in my future posts.
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