Vehicle Quota SystemSingapore is a small country with limited space. In order to prevent huge traffic jams, the Singapore government implemented the Vehicle Quota System (VQS), a system which allows the government to control the amount of cars on the road. The quota is reviewed on a regular basis and is set per month, based on the road conditions and amount of cars permanently taken off the road in that month (by scrapping, exporting or otherwise) The VQS is controlled by the Certificate of Entitlement, or COE. Here's how it works:
Certificate of Entitlement
Registration fees and taxesEvery car in Singapore is taxed by an import (Customs) duty, registration fee, an additional registration fee, and road tax. The import duty is 31% of the import value of the car, on top of that, a Registration Fee is charged for private cars and on top of that, an Additional Registration Fee (ARF) is charged. The (ARF) is a percentage of the Open Market Value (OMV - determined by Singapore customs "taking into account purchase price, freight, insurance and all other charges incidental to the sale and delivery of the car from country of manufacture to Singapore") of the vehicle. The ARF percentage has increased in the Budget 2013 to 100% on the first 20,000 dollar, 140% on the next 30,000 dollar OMV value and 180% on the OMV above 50,000 dollar. This measure has colled COE values (yes the amount mentioned above is 'low'). To then get the car on the road, you have to successfully bid for a COE and pay road tax. Road tax brackets are based on the type and weight of the vehicle. After the 10th year, the road tax will rise with an additional 10% per year, up to a maximum of 150% at the 15th year.
Total cost of your vehicleCost price + Import duty + Registration Fee + Additional Registration Fee + COE + Road Tax
And then, of course, we haven't even counted in the compulsory Vehicle Insurance, ERP, petrol and maintenance costs ....
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