On 29th Aug this year, the Land Transport Authority (LTA) announced that it will review its Off-Peak Car (OPC) scheme and will implement a few changes. One of the changes is that LTA will now give cash rebates of up to $1,100 once every 6 months after owners convert their normal cars to the new OPC scheme.
Now Singaporeans are jumping up and down in happiness at the news, LTA is paying you to drive your car, but frankly I don’t get why Singaporeans are so happy about the new scheme. Currently when a Singaporean change his car from a normal car to an off-peak car, he will get an extra rebate base on long he drives his vehicle as an OPC vehicle. He will receive this rebate of $2,200 per year, in one lump sum upon the de-registration of the vehicle provided the vehicle is below 10 years old and is eligible for PARF.
Under the new scheme, LTA will give cash rebates of up to $1,100 once every 6 months. So basically there’s no change! Only thing is that instead of giving it to you in one lump sum at the end, they are giving it to you piecemeal once every 6 months. If anything, the new scheme is worse because you don’t get the money in one lump sum but piece by piece.
So all those Singaporeans jumping in happiness; please sit down. LTA is not paying you to drive your car; they are just giving the money to you piece by piece.