The following post was contributed by James Low. It is a contribution towards creating a repository of ideas that will push Singapore towards being more environmentally sustainable. Feel free to improve and build upon his idea and constructive criticism is appreciated!
In Singapore, there are arguably as many cars as there are people (I know I’m exaggerating but seriously, don’t you think that there are way too many cars on our roads?) and that presents several problems – traffic congestion, greenhouse emissions, rising fuel (and electricity) cost, health issues, etc. We love driving. We love buying cars. We love everything about owning these four-wheeled machines. Can’t live without them. We practically work so that we can afford to buy one (or two, or four).
Today, I put on my policy making hat and propose the following:
Mileage Pegged Road Tax
Now, as all current and future car owners know, we have to pay a road tax (amongst a myriad of other things) in order to own and drive a car in Singapore. Currently, this road tax is pegged squarely on the car’s engine capacity. That’s worked out well for decades, and will continue to serve its minimalistic purpose.
While segregating cars by its engine capacity has its merits, I propose that identifying usage of said vehicle is just as important. The road tax, as the name suggests, should be a tax for using the roads. In order to make this easier for everyone concerned – governing bodies and road users alike – the vehicle inspection held on an annual basis will include mileage recording, and together with the existing measurements of engine capacity, a road tax payable will be derived.
I can already hear people reaching for their pistols ready to put a bullet through my skull. Let us assess this proposal before we make any death threats shall we? I’ll use the in-depth pros and cons analysis.
First the cons:
- Troublesome. Yes. It’s going to be quite a bit more work for VICOM and car-owners. We’ll also run the risk of people trying to tamper with their odometer, but as with any legislation, there will always be folks trying to cut corners.
- Confusion. As with any new legislation, it’s going to cause mayhem and confusion amongst the stakeholders. This will iron out naturally as long as the processes are in place. Further, the infrastructure necessary for such an exercise already exists!
- “I drive for a living! This isn’t very fair!” There will be folks whose livelihood depend on driving. It is a necessity of our daily lives. In order to alleviate the burden of my proposed policy, occupations that depend on driving around all day should have some tax breaks or possibly even partial exemption from the road tax. Further, for people whose occupation requires extensive driving, vehicles should be registered under companies, much like vans and trucks currently, and tax matters should be directed to these companies – and possibly direct some costs towards these entities.
- Ineffective to a large group of road users. Of course, given the fact that many road users would rather pay huge amounts of money, get laden with a humongous debt for 10 years, scrimp and save every way they can to feed the car, queue for hours
Now the pros:
- Accountability. People have to start taking responsibility for their actions. If you use the roads more, you’ll have to pay more; much like our ERP system. If you drive a car with bigger capacity, you are responsible for higher emissions every time you use it.
- Encourages alternate forms of transport. When people start to realise that it’s just not worth it, which would result in more people seeking alternate forms of transportation. This will in turn lead to more businesses providing services for folks using sustainable transportation methods – taking the MRT, cycling to work, electric bicycles, electric cars – thus creating an entirely new industry.
- Increased Government revenue. While I would love to say that this is the main reason why I would implement this system, it’s not. But it IS a good argument for the system, especially if someone from the relevant authority happens to chance upon this post.

Cars cost so much in Singapore, and yet the number of new cars sold per year continually increases, even with our extensive public transportation network. I think it’s time that we consider other ways of limiting the purchase, or at the very least, control the amount of car usage.
What do you think guys? Drivers, don’t stone me, leave a response.