Singapore PAP gahmen lost $2.6 billion p.a. for failure to tax PHV cars by mileage adequately.

Discussion in 'Asia' started by Bic_Cherry, Jul 10, 2019.

  1. Bic_Cherry

    Bic_Cherry Active Member

    Joined:
    Jun 24, 2012
    Messages:
    590
    Likes Received:
    38
    Trophy Points:
    28
    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.

    Poor depend on poor for help with concessions and public transportation vouchers:

    AFFORDABLE FARES, SUSTAINABLE PUBLIC TRANSPORT
    The Fare Review Mechanism Committee Report 2013
    [​IMG]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):
    [​IMG]
    https://www.sgcarmart.com/tools_tips/depreciation.php
     
  2. Bic_Cherry

    Bic_Cherry Active Member

    Joined:
    Jun 24, 2012
    Messages:
    590
    Likes Received:
    38
    Trophy Points:
    28
    Henceforth, due to need to claw back motor vehicle on road usage fees, GRAB and Gojek fares will just have to cost more because now have to factor in the government PHV fare royalty/ levy. Maybe term as 'public transportation fund contribution' will sound more palatable, so all PHV drivers and users will not begrudge the fee.

    And yes, someone senior at LTA should have bonus frozen because people outside LTA gave the suggestion, rather than the overpaid LTA scholars themselves.

    This is my NS contribution to Singapore, to make public transportation more affordable and also reduce freeloading of road infrastructure by PHV companies, passengers and cars. If PHV passengers are unhappy about surcharge, they are free to hire a bicycle and make their way to their destination at zero payment involved.

    In due course, they won't have to contribute to the public transportation fund if they take public transportation because this should be contributed to by the high SES people who opt for PHV bespoke chauffeured private transportation instead.
     
  3. Bic_Cherry

    Bic_Cherry Active Member

    Joined:
    Jun 24, 2012
    Messages:
    590
    Likes Received:
    38
    Trophy Points:
    28
    GRAB is undoubtedly doing a booming business because the PHV rates are so cheap because as mentioned, their vehicles are at present, in essence, freeloading off the current motor vehicle road transportation system by using ordinary cars as PHV with zero additional road taxes or other fees like COE, ARF, excise duties payable.

    Another evidence of this is how PHV vehicle fares have undercut taxi fares by up to 40% for similar rides.

    Those high SES PHV passengers are however, the chief benificiaries of this glaring loophole and in the periphery, the PHV drivers and their company sponsors such as GRAB and Go-jek.

    The government is thus obliged to close this glaring loophole which is bleeding from uncollected taxes and other charges to a tune of up to $2.6 billion p.a., in part to limit motor vehicle population on the road and in part on the basis of progressive taxation, to use a large portion of these PHV fares to pay for public transportation vouchers for the needy and concessions travel, so that ordinary public transportation users are not unnecessarily burdened.

    Bespoke services, especially chauffeur private hire car services will always command a premium price, likewise, walking, bicycle or PMD transportation option will always be free for the more needy segments of society, in part to relieve burden on the public transportation system and in part to make poor people independent (have to self fix PMD/ bicycle to save $$$). Wealthier segments of society shall keep public transportation operational but no frills since anyone upset with the adequate service can always either buy a car or a bicycle and travel on his own terms within legal limts of ambient music choices, speed, temperature, routes etc.

    Instead of forcing public transportation users to help poorer commuters, it is well within reason to make high SES PHV users pay for public transportation subsidise for the poor or other needy segments of society such as students etc.

    So please don't accuse me of being capricious about my suggestion of new taxation strategies which are just and unite Singapore society. To not do so (sit on our palms and do nothing) will be our big mistake ultimately.


    [​IMG]
     
  4. Bic_Cherry

    Bic_Cherry Active Member

    Joined:
    Jun 24, 2012
    Messages:
    590
    Likes Received:
    38
    Trophy Points:
    28
    But now all the PHV sponsoring companies know exactly how much $$$ each driver makes (used to deduct the commission which is retained by PHV company), so government has a very clear view of how much a car is being used in excess of it's original purpose for personal/ family use; rather than for the business use of a private for profit chauffeur service.

    Government can very easily charge a levy on this turnover$$$ amount, just like government imposes a tax on tobacco by number of cigarette sticks or GST on transaction amount $$$ on goods purchased.

    An amount EQUAL to the amount of commission charged by the PHV sponsoring company is a reasonable levy that the government can collect and probably no PHV passenger would begrudge this fee in part because it is a logical and reasonable fee to charge in lieu of the congestion and pollution added on by PHV vehicles and in part because it will be channeled to help poor people with public transportation and also build up public transportation infrastructure for future the good of the entire population of Singapore.

    As mentioned, for current PHV users, public transportation or PMD use are all very viable cheaper or even FOC alternative transportation options.
     
    Last edited: Jul 10, 2019
  5. Bic_Cherry

    Bic_Cherry Active Member

    Joined:
    Jun 24, 2012
    Messages:
    590
    Likes Received:
    38
    Trophy Points:
    28
    LTA's Non sequetur, boiler plate standard reply:...


    Our Ref: LTA/QSMO/SQSS/SQ/F20.000.000/1304503
    Date : 23-Jul-2019
    Tel : 62957720
    Fax : 63961192

    Dear Ms Cherry
    PAP gahmen lost $2.6 billion p.a. for failure to tax PHV cars by mileage adequately.
    FEEDBACK NUMBER: 20190710-0520

    We received your email of 10 July 2019.
    We wish to share that road tax is determined by the car’s use of road space, and an element of progressivity is applied on the basis of the car’s engine power. Road space is measured using the Passenger Car Unit (PCU) where different vehicle types are measured relative to a passenger car, which is assigned a unit of 1. Hence, Private Hire Cars (PHCs), which take up the same amount of space as a normal family car, are charged similarly.
    We also wish to share that high mileage vehicles do pay more given the Electronic Road Pricing (ERP) system, which charges motorists for every use of priced roads during the designated hours. This minimises the traffic volume in heavily used roads, and to the extent that a particular vehicle contributes more to congestion, the owner correspondingly pays a higher price.
    Thank you for your feedback.

    Yours sincerely
    Winnie Wong (Ms)
    Assistant Manager
    Service Quality Division

    Walk, Cycle, Ride Message: Land Transport Master Plan (LTMP) 2040
    - Commuters can look forward to more convenient, well-connected and fast journeys using public, active and shared modes of transport. 20-minute towns and a 45-minute city.
    - To create a more socially-inclusive land transport system that is gracious, and contributes to better health, safer journey and liveable environment.
    - Check out how we will make this happen at .
     

Share This Page