Local News: LTA To Launch Revised OPC Scheme on 25 Jan 2010

As announced by the Land Transport Authority (LTA) in August 2009, these initiatives aim to make the OPC scheme more attractive so as to encourage more car owners to opt into the scheme. This serves to support LTA's overall objective to better manage congestion during peak periods.

Under the revised OPC scheme, all newly registered OPCs and normal cars converted to the revised scheme, on or after 25 January 2010, will enjoy unrestricted usage on Saturdays and the eves of 5 public holidays. These public holidays are namely, New Year, Lunar New Year, Hari Raya Puasa, Deepavali and Christmas.

The removal of usage restrictions on Saturday and 5 public holiday eves will have to be accompanied by corresponding adjustments to the tax concessions. The annual road tax discount will be correspondingly reduced from $800 to $500 under the revised OPC scheme. The minimum annual road tax will be $70, instead of $50 under the existing OPC scheme. This means that existing OPC owners who opt for the revised OPC scheme will have their annual road tax discounts reduced by between $20 and $300. This is because the tax concessions given to OPC owners were computed taking into consideration the restricted usage periods.

Existing OPC owners can apply to convert to the revised OPC scheme on or after 25 Jan 2010 to enjoy the extended usage hours in exchange for reduced tax discounts with payment of a one-time administrative fee of $100 and applicable road tax top-up.

Those who remain under the existing OPC scheme are required to purchase an electronic day licence (e-Day Licence) if they wish to drive their OPC between 7am and 3pm on Saturdays and eve of the 5 public holidays.

Owners of normal cars and converted OPCs under the existing OPC scheme who opt into the revised OPC scheme will enjoy a cash rebate of up to $1,100 for every 6 months the car is registered as an OPC, until the car reaches 10 years old. The car must be kept as an OPC for at least 6 months after its conversion, except in cases of deregistration or when the OPC reaches the age of 10 years, to enjoy the cash rebate. Under the existing OPC scheme, this rebate of $2,200 per year is paid as a lump-sum only at the point when the car is deregistered and is still PARF-eligible.

Vehicle owners who register a new car as an OPC under the revised OPC scheme will continue to enjoy an up-front tax rebate of up to $17,000.

Information on the cash rebate for conversion of a normal car to an OPC is available via www.onemotoring.com.sg from 25 January 2010, under LTA e-Services > Online Enquiries > OPC/WEC Conversion fees.

Credits: wilswong