Government moves against sky-high COE prices
LTA's measures for fewer cars on the road kick off August.
The vehicle growth rate will be reduced from the current 1.5% p.a. to 1% p.a. in August and eventually to 0.5% by February 2013.
The 0.5% p.a. vehicle growth rate will persist until January 2015, the Land Transport Authority (LTA) said in a release.
All combined, these will make available about 390 more COEs per month from August 2012 to January 2013. These additional COEs are equivalent to about 10% of the current monthly quota, said LTA.
It added that this measure "will bring about a smoother transition to a lower vehicle growth rate, as the Government continues to manage the growth of the vehicle population at a sustainable pace."
Contribution rates to Category (CAT) E will also be reduced.
"To maintain a more stable supply of COEs in each COE category under a lower vehicle growth rate, the contribution rate to CAT E will be gradually reduced from the current 25% to 20% from August 2012, and to 15% from February 2013. The effect of this is to return more COEs from de-registered vehicles to their respective categories, with proportionately fewer quotas in CAT E," said LTA.
"Currently, 25% of COEs from de-registered vehicles in each vehicle category form the COE quota for the Open Category (CAT E), which can be used to register vehicles from CAT A to CAT D, to provide flexibility for changes in the vehicle mix," it added.