SINGAPORE: Two initiatives to encourage drivers to choose vehicles with lower emissions will be extended, but with scaled-down incentives, to support Singapore’s aim to have all vehicles run on cleaner energy by 2040.
The Vehicular Emissions Scheme (VES) will be extended from Jan 1, 2026, to Dec 31, 2027, with revisions to its banding, rebates and surcharges, the Land Transport Authority (LTA) and the National Environment Agency (NEA) announced on Monday (Sep 8).
Under the scheme, which was introduced in 2018, buyers of cleaner cars receive rebates to offset the additional registration fee for their vehicles, while buyers of vehicles that produce more emissions are required to pay surcharges.
Going forward, only electric vehicles (EV) will receive VES rebates.
“Hybrid vehicles will no longer receive rebates, while more pollutive vehicles will have higher surcharges,” the agencies said.
The Electric Vehicle Early Adoption Incentive (EEAI) will also be extended until Dec 31, 2026. The scheme allows owners of fully electric cars and taxis to receive a rebate of 45 per cent off the additional registration fee.
The additional registration fee is a tax paid when registering a vehicle and is calculated based on a percentage of a vehicle’s open market value – the cost of a vehicle imported into Singapore.
With the changes to the schemes, authorities said they expect a short-term increase in COE prices.
“Potential car buyers are strongly encouraged to be prudent in bidding for COEs,” the agencies added.
