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- Jan 5, 2010
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PAP gahmen lost $2.6 billion p.a. for failure to tax PHV cars by mileage adequately.
Isn't it a very glaring loophole that PHV cars are all freeloading on Singapore road infrastructure given the fact that they all travel 9x the mileage of a normal family sedan car?
At an average depreciation of $8000 p.a. and not even including road taxes payable, each PHV car is thus short changing government coffers of $64,000 p.a. every year based on their road mileage travelled. https://www.straitstimes.com/singap...p-petrol-consumption-in-singapore-say-experts
Accoring to https://www.straitstimes.com/singapore/transport/private-hire-cars-outnumber-taxis-by-a-mile there are 41,297 PHV registered cars on the roads in April of 2017.
Given that each PHV car by mileage has short changed IRAS (tax authority) of $64,000 based on loophole of obsolete road use taxes policy, the total amount shortchanged by all PHV vehicles in Singapore would thus be up to $2,643,008,000.
The Singapore government should strive hard to recover this large amount of $$$ from the rich and wealthy people who like to use such private and bespoke private hire car chauffeur services and use it to improve PMD/ Bicycle use on the roads, of which they are currently being squeezed off the roads due to excessive congestion and dangerous/ aggressive driving habits of PHV drivers.
More people using bicycles will mean lesser strain on the public transportation system and a lesser need to provide concessionary travel and also public transportation subsidy vouchers to support poor people. $2.6 billion dollars should more than cover these subsidies and concessions and public transportation users who are already borderline poor, shouldn't be expected to subsidise their equally poor co-users.
LTA should charge all PHV operators like Gojek, GRAB car etc a levy tax of an equal share of their commission collected for the physical road infrastructure that the PHV use for their business purposes. Based on mileage and the profitability of business, this would probably somewhat make up the $2.6 billion in road use fees and charges by motor vehicles lost (if all the PHV cars indeed do the 9x normal car mileage and are not idling in car rental stores awaiting rental by PHV drivers). Some of these PHV levies collected can also be channeled towards treatment of medical/ lung problems in cyclist, pedestrians and PMD users because these PHV emit toxic air pollutants and add to greenhouse gas emissions. Some of the $2.6 billion could also be used for nation building, like the infrastructure and maintenance costs of MRT lines.
Isn't it a very glaring loophole that PHV cars are all freeloading on Singapore road infrastructure given the fact that they all travel 9x the mileage of a normal family sedan car?
At an average depreciation of $8000 p.a. and not even including road taxes payable, each PHV car is thus short changing government coffers of $64,000 p.a. every year based on their road mileage travelled. https://www.straitstimes.com/singap...p-petrol-consumption-in-singapore-say-experts
Accoring to https://www.straitstimes.com/singapore/transport/private-hire-cars-outnumber-taxis-by-a-mile there are 41,297 PHV registered cars on the roads in April of 2017.
Given that each PHV car by mileage has short changed IRAS (tax authority) of $64,000 based on loophole of obsolete road use taxes policy, the total amount shortchanged by all PHV vehicles in Singapore would thus be up to $2,643,008,000.
The Singapore government should strive hard to recover this large amount of $$$ from the rich and wealthy people who like to use such private and bespoke private hire car chauffeur services and use it to improve PMD/ Bicycle use on the roads, of which they are currently being squeezed off the roads due to excessive congestion and dangerous/ aggressive driving habits of PHV drivers.
More people using bicycles will mean lesser strain on the public transportation system and a lesser need to provide concessionary travel and also public transportation subsidy vouchers to support poor people. $2.6 billion dollars should more than cover these subsidies and concessions and public transportation users who are already borderline poor, shouldn't be expected to subsidise their equally poor co-users.
LTA should charge all PHV operators like Gojek, GRAB car etc a levy tax of an equal share of their commission collected for the physical road infrastructure that the PHV use for their business purposes. Based on mileage and the profitability of business, this would probably somewhat make up the $2.6 billion in road use fees and charges by motor vehicles lost (if all the PHV cars indeed do the 9x normal car mileage and are not idling in car rental stores awaiting rental by PHV drivers). Some of these PHV levies collected can also be channeled towards treatment of medical/ lung problems in cyclist, pedestrians and PMD users because these PHV emit toxic air pollutants and add to greenhouse gas emissions. Some of the $2.6 billion could also be used for nation building, like the infrastructure and maintenance costs of MRT lines.
Poor depend on poor for help with concessions and public transportation vouchers:
AFFORDABLE FARES, SUSTAINABLE PUBLIC TRANSPORT
The Fare Review Mechanism Committee Report 2013
http://mot.gov.sg/news/FRMC Report 1 Nov.pdf
Estimate of annual depreciation of car value in Singapore (mainly from COE, ARF amortization etc):
https://www.sgcarmart.com/tools_tips/depreciation.php
AFFORDABLE FARES, SUSTAINABLE PUBLIC TRANSPORT
The Fare Review Mechanism Committee Report 2013
Estimate of annual depreciation of car value in Singapore (mainly from COE, ARF amortization etc):
https://www.sgcarmart.com/tools_tips/depreciation.php