COE - Pay as you use!!
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Is there any reason why we have to pay the COE upfront to LTA instead of paying them on an annual basis? Logically speaking, the cost of a COE is basically the piece of "paper" and it doesnt make sense that car owners have to take loan to finance it. Assuming the COE at 20K and interest for a 10 years loan is 3%. A car owner will end up paying 6K of interest or 30% more for the COE.
Does LTA need so much money? Are they running into come cash flow problem? -
High COE prices are part of the government's overall strategy to discourage private vehicle ownership. A potential car owner is more likely to balk at having to pay the entire COE cost up front, than at paying it off in more "affordable" annual instalments.
Does LTA need so much money?
No, but they'll take it from you anyway,
MG -
You dont pay the entire sum up front, you pay installment to the bank that pays LTA upfront. My point is, why cant we pay interest free COE installment to LTA directly instead of having to go through the banks.Originally posted by Meia Gisborn:A potential car owner is more likely to balk at having to pay the entire COE cost up front, than at paying it off in more "affordable" annual instalments.
MG -
In the 1st place, the COE is like that you are renting to use the roads in SG since 1990
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If it is rent, why cant we pay LTA on a monthly basis instead of having to take up loan from the banks to pay them upfront. You dont do that when you rent a shop or a flat do you?Originally posted by sbst275:In the 1st place, the COE is like that you are renting to use the roads in SG since 1990 -
In terms of pricing road usage, what can be the difference between:
(1) Excise Duty (Upon import)
(2) C.O.E. (Upon Purchase after import)
(3) ERP (After Purchase upon Driving)
To my mind these three serve the same purpose but people like MPs, nominated MPs, grassroot leaders, AA, Case who represent us did not seem to raise objections.
So the government once again got away from charging people triple on one item of tax by giving excuses that charging the second time is to have a way to curb excessive vehicles on the road and charging the third time is to fine tune road congestion at certain point.
All these kinds of ministerial decisions are pure bull but no body is speaking up for the interest of the people.
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Did you read how LTA reply to the query on the usage of COE rebate on 10th June (pg.32) TODAY paper? They are literally tell you the same thing which we are questioning. This is what we call dictatorship isnt it?Originally posted by robertteh:In terms of pricing road usage, what can be the difference between:
(1) Excise Duty (Upon import)
(2) C.O.E. (Upon Purchase after import)
(3) ERP (After Purchase upon Driving)
To my mind these three serve the same purpose but people like MPs, nominated MPs, grassroot leaders, AA, Case who represent us did not seem to raise objections.
So the government once again got away from charging people triple on one item of tax by giving excuses that charging the second time is to have a way to curb excessive vehicles on the road and charging the third time is to fine tune road congestion at certain point.
All these kinds of ministerial decisions are pure bull but no body is speaking up for the interest of the people. -
I think you just answered your own question.Originally posted by Gazelle:You dont pay the entire sum up front, you pay installment to the bank that pays LTA upfront. My point is, why cant we pay interest free COE installment to LTA directly instead of having to go through the banks.
If I were a moneygrubbing organization like the LTA, I'd rather have the money now than have to wait for it to be paid to me in periodic installments.
It's a rather basic accounting axiom: accelerate receipts and delay payments.
MG -
Singaporeans are mostly vain. The gov take this advantage to make $$$. Of course, we also have tyrant government!!!Originally posted by Gazelle:Did you read how LTA reply to the query on the usage of COE rebate on 10th June (pg.32) TODAY paper? They are literally tell you the same thing which we are questioning. This is what we call dictatorship isnt it? -
Isn't it the same? If they collect by monthly, they also want to charge interestOriginally posted by Gazelle:If it is rent, why cant we pay LTA on a monthly basis instead of having to take up loan from the banks to pay them upfront. You dont do that when you rent a shop or a flat do you? -
Why should we pay interest for something which we havent use?Originally posted by sbst275:Isn't it the same? If they collect by monthly, they also want to charge interest -
When you pay for the COE, the ten years starts tickingOriginally posted by Gazelle:Why should we pay interest for something which we havent use? -
hello we talking about Pay and pay government here leh what you think?Originally posted by Gazelle:Why should we pay interest for something which we havent use? -
Gazalle,
I don't think the government can keep taxing a population in such a manner. There is a saying: "You can fool some people some of the time but not all people all the time."
The younger population is not the same - more educated knowing their rights and how much they can take to support the system of meritocratic gibberish. They are not going to listen the craps about road pricing on three tiers - excise, purchase and driving. They will resist any further attempts to make them pay for a very expensive bureaucracy that never produce results except high cost burdens.
Government needed to show better reason in collecting and continuing to collect double and triple taxes under all the undebated close-door pretentious policies under previous one-man autocratic rule.
Without the younger population now to produce this kind of monies - S$500,000 for vehicle in our life-cycle and S$300,000 for HDB flats for which citizens already paid for its land, there will be no hope for any national economic competitiveness no matter what talents they employed (if indeed there are any talents).
People is supreme. The government should know it. They cannot pretend to use young leaders to put up more justifications to keep to old unworkable policies.
The first move of the people should be to express their collective desire to change - put in spoit votes to tell dictators to wake up and listen. That is the only way!!! -
LTA should just scrap the COE rebate, and let car owners pay as they use.