The high prices of cars and motorcycles in Singapore can be attributed to several factors:
Limited land availability: Singapore is a small country with limited land area. As a result, the government imposes strict regulations on vehicle ownership and aims to control the number of cars on the roads to manage traffic congestion and maintain a sustainable transport system. This is achieved through measures like a vehicle quota system (known as the Certificate of Entitlement or COE), which requires vehicle owners to bid for and purchase a permit to own a car or motorcycle for a limited period.
High taxes and import duties: Singapore imposes high taxes and import duties on vehicles to control car ownership and discourage excessive car usage. These taxes can significantly inflate the prices of cars and motorcycles. The taxes include the Additional Registration Fee (ARF), Excise Duty, and Goods and Services Tax (GST), among others.
Cost of COE: The Certificate of Entitlement (COE) is a significant component of the vehicle's price in Singapore. The COE grants the right to own and use a vehicle for a specific period, typically 10 years. As the number of COEs issued is limited, the demand often exceeds the supply, leading to high bidding prices. The cost of the COE is added to the vehicle's price, making it more expensive.
Vehicle-related expenses: Apart from the purchase price, there are additional expenses associated with owning a car or motorcycle in Singapore. These include road taxes, insurance premiums, maintenance costs, parking fees, and Electronic Road Pricing (ERP) charges, which are tolls imposed on vehicles entering certain congested areas during peak hours.
These factors, along with Singapore's efforts to promote public transportation and reduce reliance on private vehicles, contribute to the high prices of cars and motorcycles in the country. The government aims to strike a balance between mobility needs and sustainable urban development by discouraging excessive car ownership while providing efficient public transportation options.