by Daniel Yap
I’M A rider. My trusty motorcycle has been my means of transportation over long distances for more than a decade. This week, the G dropped a bombshell tiered tax of up to 100 per cent of a bike’s open market value.
My current, very, very modest ride is my Suzuki DRZ 400SM. Even though I don’t fawn over it as much as other bikers do their rides, I love it. It’s considered a small capacity bike in any other developed country. Here, the G has suddenly deemed it a “luxury”. My bike is now a luxury I cannot afford.
I’m venting now, excuse me. I don’t care what you think of it.
When my bike was new it would go for $16,000 or so, COE included. Today, the latest iteration of such a bike will cost about $1,500 more thanks to the G’s new tax regime. A larger bike, even a modest-sized 600, will cost $6,000, $12,000, $20,000 more than before. Madness.
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But I know the score, it is the G’s prerogative to tax what they will. And it’s my prerogative to feel how I feel about it. And I’m not alone.
It seems like the G doesn’t understand us bikers. Biking is in our blood. Biking is a lifestyle, a community. I don’t greet other drivers in my multi-storey car park when our paths cross. I only greet other bikers. “Be safe out there, bro”, “it’s raining up north”, “nice ride”. The bike was the poor man’s hope for that feeling of freedom, of empowerment. And now it’s out of reach.
You’ve hurt us, G, you’ve hurt us. We aren’t “dismayed” like the Today article says. We are pissed off. Outraged. Livid. I’ve heard biker friends screaming blue murder, trying to migrate, crying, frantic because the dreams and plans they’ve been cherishing for the last few years, working slowly up to the next-level ride, it’s all up in smoke now. It’s crushing.
And for what? The new tax on bikes is supposed to “solve” a problem created by another more or less pointless policy decision – the slashing of bike COE supply.
The COE for bikes has risen from under $900 in 2010 to well over $6,500 today. The massive jump is because LTA decimated the bike COE supply as a proportion of all COEs. Why did they do that? To move the quota to the car COE supply because, I don’t know, somehow bikes cause the same congestion as cars in LTA-La-Land. Or maybe because car COEs make a lot more money. Or poor people should not be on the road. Or car owners were lobbying, I don’t know.
This price rise is the cause (not the result) of the surge in popularity of bigger bikes because the kinds of people who could only afford to buy a small bike like a brand new $6,000 kupchai in 2010 will never ever be able to afford a $6,500 COE in 2016. This prices them out of the market, leaving the COE supply for buyers with slightly deeper pockets. And which idiot would pay for a $6,500 COE to buy a $3,000 bike anyway?
Of course those poor unkers and delivery riders whose livelihoods got screwed over complained, and rightly so. These days even food delivery riders and couriers ride 400cc bikes. In the past, it was rare to see anything past 200cc for these jobs.
Guess what? This new tax isn’t going to make a difference for those poor bikers who got shafted by the COE crunch. It will simply put more bikes out of reach for more Singaporeans. It will just make more money (pennies, really) for a G worried about balancing the budget.
And does this tax make things more “progressive”? In a sense, yes – those who can afford to pay for a better bike will have to pay more. Cars are subject to such a tax regime (although the price of a luxury car is still ten times or more than that of a luxury bike).
But don’t make a pretence of being “progressive” when what should have been done is to make COEs more affordable for lower end bikes (and therefore more progressive) by introducing a tiered COE system, which bikers have been agitating for. Now low-income bikers are penalised with high COEs, while middle-income bikers are penalised by COEs and high ARF taxes.
No doubt, this new scheme makes good money for the G, as fellow rider Ian Tan has calculated. It makes some sense in itself, although the implementation is as shocking as the 30 per cent hike on water. Why crimp our move towards a “car-lite” society? Bikes are the definition of “car-lite”.
I could defend bikes all day. They ease congestion. Riding helps develop better driving habits. They pollute less. Riders are more community-minded. Bigger bikes are safer because they have better design, control, better brakes, and more power for responsible riders to escape danger.
Maybe I’ll still buy a bigger bike someday. I’ll just have to work hard and save more for it. But today I feel pain, a pain echoed by my fellow bikers in Singapore. My dreams are further out of my reach. I can forget about that Speed Triple now that it costs $6,000 more. Or that Ducati Scrambler in yellow with the racing stripe. I can forget about ever feeling the exhilaration of mounting a litre bike… maybe if I move abroad. Wait, did I just think of migrating?
This is a heart issue, and the new and mostly senseless tax regime is causing us pain. I don’t want to hear the “justifications”. That you’re trying to open up the supply of bikes to lower income bikers. If the G wanted to do that, they would have raised the COE numbers.
I don’t want to hear how the G said over half of new motorcycle buyers will not be affected by the new system because they buy small bikes. We are all affected because we all dream about owning a bigger bike, a better bike. To me, this is about the G making more money, money, money, and making it off regular joes with mid-sized and low incomes.
I’m not going to listen to attempts at “reason”. Deal with it. Just like I’m going to have to deal with the new bike tax.
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