LTA to retain 0% vehicle growth rate until 2022

The Land Transport Authority (LTA) has announced that it will retain the current vehicle population growth rate of 0% until 31 January 2022.

In an announcement made on the 14 August 2020, the LTA said that this growth rate was chosen given the current uncertainty over how travel demand patterns will evolve amidst the COVID-19 situation.

The Vehicle Growth Rate (VGR) for Certificate of Entitlement categories A, B and D will remain unchanged at 0% per annum, while the VGR for Category C (applicable only to commercial vehicles) will be maintained at 0.25% per annum.

The current VGR has been set at 0% per annum for Categories A, B and D since February of 2018. Meanwhile, the VGR for Category C was maintained at 0.25% per annum, to provide businesses with time to improve the efficiency of their logistics operations and reduce the number of commercial vehicles that they require.