Despite the imminent switch to the "nexgen ERP", distance-based pricing is still several years away.

Senior Minister of State for Transport Amy Khor said: "Give the nexgen ERP system some time to settle down first. In the meantime, we will study different approaches and options."

This was in response to a parliamentary question by Member of Parliament (MP) Gerald Giam on the timeline for the implementation of distance-based charging.

Current system reaching end of life

Khor also briefly explained that the "key reason" for switching to the next-generation ERP is that the current system is reaching the end of its operational life.

The current system has been in place since 1998.

"After studying several options, LTA concluded that the Global Navigation Satellite System, or the GNSS, was the most suitable technology to use for nexgen ERP," added Khor.

"It will remove the need to maintain the current bulky gantries and generate accurate, real time traffic data to support transport policy, planning and traffic management."

Will it affect road tax?

Giam asked in a follow-up question if distance-based charging will be revenue neutral for the government compared to the current ERP system, and if that will result in a reduction in road tax.

Khor said that it is premature to answer this question. She added that the government will first have to study traffic patterns based on data from the next generation ERP system before coming to a decision.

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Top image from CNA video.