How about having no admin fee for failed ERP deductions?

This was the question posed by Workers' Party (WP) MP Muhamad Faisal Bin Abdul Manap to Transport Minister Khaw Boon Wan last week (Jan. 9) on whether the minister will "consider allowing motorists to make payments for failed ERP deductions ... without incurring the administrative fee or incurring a less punitive fee".

Currently the administrative fee is $10 if payment is done through cash or cheque, or $8 if paid electronically.

Unfair for taxpayers to bear administrative costs for motorists

In a written parliamentary reply, Khaw said that "motorists who make good their failed ERP deductions within two weeks of the date of the letter from LTA are required to pay an administrative fee to cover the cost of processing the ERP violation, notification and payment".

He added that it "will not be fair for taxpayers to bear these costs on the motorists’ behalf".

Khaw advised motorists to sign up with payment services like Motorpay, vCashCard or EZ-Pay to avoid failed ERP deductions.

This is because users of such services need not insert a cash-card into their car's in-vehicle unit (IU) and ERP charges are automatically charged to their credit cards.

High processing fees a sign of inefficient system?

Economist and public intellectual Donald Low took aim at the administrative cost in a Facebook post that originally targeted another inefficient policy execution -- making old coupons obsolete instead of allowing them to be used on a pro-rated basis.

Here's his post:

Faulty IUs replacement comes at a fee

For some motorists, failed ERP deductions occur because IUs are unable to detect the inserted cash cards.

While the motorists may replace their IU for free if the IU is still under its 5-year warranty, those without warranty would cost $150 to replace (without GST). There is also a $15 charge to remove the faulty IU.

For FY2015, the taxman in Singapore collected $1.8 billion in Motor Vehicle Tax and $5.41 billion in Vehicle Quota Premiums.

Top image from LTA

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