Surcharge for second car owners being considered

Those who wish to buy more than one car in Singapore may need to fork out more cash on top of their Certificate of Entitlement (COE) in future.

The government is considering imposing a surcharge for the second car onwards – owned by the same person.

The move aims to better spread car ownership more evenly, given the limited COE supply.

If implemented, the surcharge will not apply to existing multiple car owners.

Buyers of mass-market cars who are currently competing for COEs in Category A with buyers of luxury cars may also see some relief.

The government is looking at factoring engine power as a way to better delineate Category A from Category B to improve the COE system.

In 2012, models that are commonly viewed as higher end options such as Mercedes Benz, Audi and BMW, made up more than one-third of category A registrations, compared to less than seven per cent in 2010.

The government will begin seeking views from the public and motor dealers on the possible changes next month.

The process will likely take about two to three months.

Source – CNA – 16 MY 2013