Can the Finance Minister stop meddling with poor people?
In his Ivory Tower, the Finance Minister who survived a stroke, decided that to lower the cost of small motorcycles, he need to increase the tax for all motorcycles.
I don't think increasing price will ever lower cost. Perhaps, when they increase prices for public transportation, it made buses and MRTs more affordable?
Well, there is the COE. See, in Singapore, you have to pay to buy a piece of virtual paper before you can own a motorcycle for 10 years. This paper now cost $8,081.
In the past (like 2015) A Harley Streetglide would cost $45,000. And Today, the same motorcycle (the 2017 model) costs $65,000.
That is a hefty 25% - 30% increase.
Sadly, for smaller motorcycles. The situation is much worse.
In 2010, My friend bought a Spark 135 for about $5,000. And Today, the same motorcycle cost over $12,000.
That is more than 100% increase.
Sadly, this increase does not only affect riders. Many dispatch riders that deliver mail, packages and your food use these motorcycles, and it will eventually end up driving costs up and affecting all consumers.
Motorcycles is a necessity. There is no such thing as a "Luxury motorcycle" In Singapore, it rains almost every day. No matter how luxury, you endure the rain, sun and exhausts fumes. There are also many bad drivers that make it dangerous as well.
Many people who own motorcycles -- even the big ones -- own it more for a hobby, riding to Malaysia for touring. And they do not use it everyday. So why TAX THEM MORE?
The cooling measure clearly failed, and cause motorcycle cost to increase. The basic principle of supply and demand plays a role. With the COE choked, the number of motorcycles is shrinking and when the Tax is increase, most people will not buy a new motorcycle, and decide to repair their 10 year old motorcycle and renew COE. This cause the available COE to be reduced, and hence price goes up.
The SG Budget should help Singaporeans but I start to wonder why driving cost up in the most expensive city in the world actually helps the people living there?
Sure many people are concerned about the 30% increase in water price, but as you do your online shipping, guess who delivers some of your food and goods. Its on Vans and Motorcycles, and be prepared that the charges for delivery to be increased again.
Perhaps the government want Singapore to be #1...
#1 in bike cost in the world
-- Iron Bowl