LTA rebuts Workers' Party's claim it brought up ERP S$10 admin fee waiver in 2017
LTA said that it is not the same as WP had suggested for taxpayers to bear these costs.
The Land Transport Authority (LTA) has refuted a Workers' Party (WP) Facebook post claiming that the waiver of the S$10 administrative fee for missed Electronic Road Pricing (ERP) payments within a grace period was initially proposed by the opposition party in 2017. LTA clarified that the recently announced waiver differs from WP's 2017 proposal, emphasising that taxpayers will not bear the administrative charges permanently. Under the current system, motorists who miss an ERP payment receive a letter within a few days, requiring them to pay the missed amount plus a S$10 administrative charge. Starting from 1 October 2024, if payment is made within a five-day grace period, the S$10 charge will be waived.
Background
Following LTA's announcement, WP posted on Facebook on 1 September, asserting that the idea to waive the administrative fee was originally suggested by the party in 2017. The post included a January 2017 parliamentary question by Aljunied GRC and WP Member of Parliament (MP) Faisal Manap, who asked whether motorists could be allowed to make payments for failed ERP deductions within a reasonable period without incurring the administrative fee or with a less punitive fee. Then-Transport Minister Khaw Boon Wan responded that such fees were necessary to cover the costs of processing the ERP violation, notification, and payment, and it would be unfair for taxpayers to bear these costs.
We made this suggestion in 2017: WP
WP's Facebook post highlighted the party's 2017 suggestion to waive the administrative fee for missed ERP payments. Faisal Manap's parliamentary question from January 2017 was reproduced, where he asked if motorists could be allowed to make payments within a reasonable period without incurring the administrative fee or with a less punitive fee. Khaw Boon Wan had replied that the fees were necessary to cover processing costs and that it would be unfair for taxpayers to bear these costs.
It's not the same: LTA
In a Facebook post on 3 September, LTA stated that the announced S$10 waiver is not the same as WP's 2017 proposal. LTA reiterated Khaw's explanation, noting that it remains valid as it is fairer for motorists with ERP arrears to bear the administrative charges rather than taxpayers.
Will not incur admin costs for letters with ERP 2.0: LTA
LTA explained that the five-day grace period is feasible due to ERP 2.0's capabilities to detect, notify, and facilitate missed payments. "With ERP 2.0, LTA will no longer need to process and send letters to motorists if they make payment within the five-day grace period. Hence, we will not incur these administrative costs and do not need to impose the S$10 administrative charge on motorists who pay within the grace period," LTA wrote. The workflow has been redesigned accordingly.
From 1 October 2024, LTA will first send an SMS notification for missed ERP payments, reminding motorists of the grace period. If the missed payment is not made within this period, LTA will issue a letter requiring the motorist to pay the missed amount plus the S$10 administrative charge. Failure to do so will result in a S$70 fine. This transitional arrangement will be in place while ERP 2.0 installation is ongoing.
Future implications
LTA concluded its post by expressing hope that the explanation clarifies the facts and helps the public understand the situation, preventing confusion from misleading claims. The new ERP 2.0 system is expected to streamline the process and reduce administrative costs, ultimately benefiting motorists who comply within the grace period. This development marks a significant shift in the management of ERP payments and could set a precedent for future adjustments in administrative fee policies.
