SINGAPORE : There will be no change in the Additional
Registration Fee (ARF) for vehicles this year.
Delivering his Budget Statement on Friday, Prime Minister Lee Hsien
Loong says the upfront cost of owning cars have been significantly
lowered.
And a medium-sized car today costs about half of what it was eight
years ago.
The Electronic Road Pricing system has also helped control any
congestion on the roads.
Mr Lee says the Government will continue to monitor the situation,
but for now there is no need to reduce the ARF further.
Also unchanged are tobacco and liquor duties.
Mr Lee says he seriously considered raising tobacco duties, but
reluctantly decides against it.
This is because revenues have been declining, and not because
people are smoking less, but rather due to more smuggling.
While there is no change to gambling taxes, the Government is
updating the basis of slot machine taxes.
Previously slot machines are taxed at 30 percent of deemed
turnover.
This turnover is estimated based on the amount of coins in the cash
box.
So machines are restricted to pay a maximum of 200 coins per win,
so that there will be more coins in the cashbox and therefore more
taxes to collect.
But Mr Lee notes the rules, in place since the 1950s, are clearly
out of pace with changes in slot machine technology and taxation
theories.
So he is changing the basis of taxation to 12 percent of actual
turnover, which is equivalent to 30 percent of deemed turnover, and
removing the 200 coin payout limit. - CNA/de
