Taxis will be removed from the Certificate of Entitlement (COE)
bidding process from next month onwards, reported local
media.
Transport Minister Lui Tuck Yew made the announcement on Friday,
saying the move was a response to public feedback that taxi
operators unduly skewed COE prices.
COE prices rose across the board in the latest
bidding exercise last Wednesday, with premiums ranging from
$68,000 to over $90,000, depending on the categories of the
cars.
"There is evidence to show that the taxis, at least in
the last bidding cycle and earlier bidding cycles, have not
affected prices. But there is also some evidence that they may have
affected prices in the Category A COEs," said Lui, as quoted
on Channel NewsAsia.
"Taking in the feedback from the public and from the industry and
having studied this issue for quite some time, we thought that this
is the appropriate thing to do," he added.
Currently, all taxis bid under the small car
Category A of 1600cc and below..
From 1 Aug, they will be removed from the bidding process and
just pay Cat A's Prevailing
Quota Premium (PQP), which is the moving average of the COE
prices for the last six
months.
COEs used by taxi
operators will also be taken
from the quota for
Category E, usually meant for big
cars.
In another move, the government also announced that in 2014, the
number of COEs made available to taxi operators will be tied to
whether they meet availability standards.
This after public feedback that taxis are not always available when
needed, especially during peak periods.
More details will be unveiled by the Land Transport Authority next
week.
