How ERP/Road Tax rates are calculated?

[ganman]

LTA is a people/public centric organization and has been grateful enough to shed light on how ERP/Road Tax rates are calculated.

 

"The objective of ERP is to manage congestion and optimise the use of our

roads. For ERP to achieve its objective, all vehicles that contribute to

congestion must share in the cost of congestion. This encourages motorists

to consciously plan their trips and consider public transport alternatives.

 

You may wish to note that ERP charges are set according to the Passenger

Car Unit (PCU) rating of a vehicle. This rating is a measure of the amount

of road space taken up by a moving vehicle relative to that taken by a

moving car. Motorcycles too take up road space and contribute to congestion

and hence are charged ERP. It is a proxy to the vehicle's contribution to

traffic congestion. Comparing to the car, a motorcycle has a PCU rating of

0.5 and hence pays half the ERP rate for a car. Bus and a heavy goods

vehicle have PCU ratings from 1.5 to 2 and will have to pay a higher ERP

charges to reflect their greater contribution to congestion.

 

Unlike ERP rates, the road tax for cars and motorcycles comprises two

components; a PCU component for the use of road space and a progressivity

component for social equity considerations.

 

We would also like to share with you that both motorcycles and cars will be

charged when the ERP gantries are in operation.

 

We thank you for writing in."