LTA addresses public suggestions on COE reforms
The Land Transport Authority (LTA) has addressed several public suggestions regarding the Certificate of Entitlement (COE) system.
Creating a separate category for private-hire cars (PHCs) and an extra surcharge on multiple-car owners will be ruled out, an LTA spokesperson clarified.
Instead, the authority is working towards allowing individual buyers to submit initial COE bids online. They are also simultaneously exploring requirements for dealers to publish car prices both with and without COE to cater to such buyers.
LTA outlined these clarifications in response to feedback gathered during its ongoing public consultation on the COE framework.
Separate PHC category would introduce unwanted trade-offs
LTA considered suggestions for a distinct COE category for PHCs. However, they noted that doing so would not increase the overall supply of COEs.
Since the quota for any new category must be drawn from the existing car pool, LTA noted that allocating too few COEs would limit PHC numbers and drive up ride-hailing fares for commuters.
Conversely, allocating too many COEs to PHCs would shrink the quota for individual buyers. This could potentially drive COE premiums even higher.
The LTA spokesperson explained:
Creating a separate PHC category would therefore introduce additional trade-offs without necessarily lowering COE premiums for individual car buyers.
Empowering individual buyers with direct bidding & price transparency
LTA clarified that it will not ban motor dealers from bidding on behalf of buyers. Feedback showed many consumers still value the convenience and services dealers provide.
However, the authority aims to give individual buyers greater control over the bidding process.
LTA is working towards allowing individuals to submit their initial COE bids online directly.
To improve transparency, LTA is also exploring rules requiring dealers to publish vehicle prices both with and without COE.
This would enable buyers who prefer bidding themselves to do so easily, while helping consumers compare prices across dealerships and make better-informed decisions.
Surcharge on multiple-car owners unlikely to lower prices
Some participants suggested imposing an additional surcharge on second and subsequent cars, similar to the Additional Buyer’s Stamp Duty (ABSD) for private property.
LTA understands this would discourage multiple-car ownership and free up more quota for first-time buyers or single-car owners.
However, they highlighted that multiple-car ownership in Singapore has been falling.
According to LTA, about 66,000 households, roughly 13% of all car-owning households, owned more than one car in 2025.
As such, they do not see multi-car owners as a key driver of today’s COE demand. A surcharge would also be “unlikely to have a significant impact on COE prices”.
LTA added that such a policy would be difficult to enforce fairly.
They cite multi-generational families living under one roof, and some households which require additional vehicles for caregiving duties.
Mixed reaction from netizens
On 29 Oct, LTA posted an infographic on its social media pages, reflecting its position on COE for PHCs.
Source: Land Transport Authority – We Keep Your World Moving Facebook
Some commenters were pleased with the rationale provided.
Source: Land Transport Authority – We Keep Your World Moving on Instagram
However, there were also a substantial number of comments expressing dissatisfaction with LTA’s explanation.
Source: Land Transport Authority – We Keep Your World Moving on Instagram
Source: Land Transport Authority – We Keep Your World Moving on Facebook
Also read: LTA proposes merging COE Cat A & B, luxury car buyers may pay S$15K more
LTA proposes merging COE Cat A & B, luxury car buyers may pay S$15K more
Featured image adapted from Land Transport Authority – We Keep Your World Moving on Facebook and CK Seng on Pexels for illustrative purposes only.