MOST existing car owners stand to gain from the planned road tax cut in July, even with more ERP gantries and higher charges coming up this year.

This is because many still do not pass a gantry now. According to the Land Transport Authority, there are about 300,000 ERP transactions a day out of the more than 3 million trips.

A recent survey conducted by The Straits Times involving 295 motorists found that 46 per cent pass a gantry. And among these, 70 per cent pay $3 or less a day.

If congestion does not ease, the number who pay and the amount they pay could rise when 16 more gantries come on this year - as announced by the Government on Wednesday.

Will they end up paying more in ERP than they will save with a 15 per cent cut in road tax taking place from July?

Some like Mr Raymond Tan, 35, will enjoy a small windfall. He will save $131 in taxes for his 1.6 litre Toyota Corolla and not incur any ERP charges as his daily commute to work at the Changi Business Park from his Tampines home is gantry-free.

Then there are a few like businessman Darren Cheong, 47, who owns over half a dozen sports cars. He stands to gain from tax cuts for each of his big-capacity cars.

Even if he has to pay more in ERP, he said: "I can only drive one car at a time."

For IT manager Albert Nam, 30, the savings will not be enough. He currently pays $900 a year for road tax on his Mitsubishi Lancer, and will save $135 after the road tax cut. But he pays about $1,050 a year on ERP charges.

Although finance and administration director Anthony Verghese, 58, said he is unlikely to be affected by the new gantries, he is already paying about $880 a year on ERP - more than the $127 road tax savings he will get on his Hyundai Accent - "even though I don't contribute to congestion in the city".

He lives in Marine Parade and uses the East Coast Parkway to get to his workplace in Pasir Panjang.

He said he will consider switching to taking public transport to work if his ERP bills double.

Indeed, some motor traders said the expanding ERP network could dampen car sales.

"The joy of the ARF cut has been overshadowed by the ERP news," said Mazda Motor (Singapore) marketing manager Philip Lu, referring to the 10-point cut in Additional Registration Fee, the main car tax that influences the price of a car.

And yet, there are others who are not discouraged by the expanding ERP network.

Financial controller Ms Tina Ho, 27, is one.

She bought a Jaguar six months ago and uses the Central Expressway to get from her Serangoon North home to her office in Shenton Way, passing three gantries on the way to work and sometimes two more on the way home.

"The CTE is a straight route to my office and despite the slow traffic there, it is the fastest one,'' she said. "I will not think about how much it costs or if it is more expensive than other routes because to me, the time factor is more important and I take the extra costs in stride and will not let them affect the way I live my life."

And with possibly higher ERP charges, "hopefully fewer people will take the CTE", she added.