SINGAPORE: An initiative to encourage drivers to choose vehicles with lower emissions will be extended for two more years to support Singapore’s vision of “100 per cent cleaner-energy vehicles by 2040”.
The Land Transport Authority (LTA) and the National Environment Agency (NEA) announced on Monday (Sep 8) that the Vehicular Emissions Scheme (VES) would be extended from Jan 1, 2026, to Dec 31, 2027, with revisions to its banding, rebates and surcharges.
“The Electric Vehicle (EV) Early Adoption Incentive (EEAI) will be extended until Dec 31, 2026, and be ceased from Jan 1, 2027,” they added in a joint news release.
"We expect a short-term increase in COE prices. Potential car buyers are strongly encouraged to be prudent in bidding for COEs," the agencies added.
Under the VES, cars are categorised into one of five bands, based on the worst-performing of the following pollutants: carbon dioxide, hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.
Buyers of newly registered cars and taxis may enjoy a rebate on the additional registration fee, or pay a surcharge depending on the VES band of the car model.
Meanwhile, the EEAI allows those who buy fully electric cars and taxis to receive a rebate on 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.
“The VES and EEAI have supported the adoption of cleaner energy vehicles, which has been on an upward trend over the past few years,” said LTA and NEA.
From January to August, 80 per cent of newly registered cars and taxis were cleaner energy models, with about half being electric models, they said.
“This is encouraging as EVs do not generate tailpipe emissions and are the cleanest vehicle option.”
Since 2021, more than 39,000 electric cars and taxis have benefited from the VES rebates and/or EEAI, according to NEA and LTA.
The extended VES will see revisions to its bands, rebates and surcharges.
Only EVs will receive rebates while more pollutive vehicles will have higher surcharges. Hybrid vehicles will no longer receive rebates.
Vehicles currently in Band A2 will fall into the neutral band B under the revised VES banding structure, while vehicles currently in Bands B, C1 and C2 will fall into revised Bands C1, C2 and C3, respectively.
“There is no change to pollutant thresholds, and there will be a shift in the banding structure,” added LTA and NEA.
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The Land Transport Authority (LTA) and the National Environment Agency (NEA) announced on Monday (Sep 8) that the Vehicular Emissions Scheme (VES) would be extended from Jan 1, 2026, to Dec 31, 2027, with revisions to its banding, rebates and surcharges.
“The Electric Vehicle (EV) Early Adoption Incentive (EEAI) will be extended until Dec 31, 2026, and be ceased from Jan 1, 2027,” they added in a joint news release.
"We expect a short-term increase in COE prices. Potential car buyers are strongly encouraged to be prudent in bidding for COEs," the agencies added.
Under the VES, cars are categorised into one of five bands, based on the worst-performing of the following pollutants: carbon dioxide, hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.
Buyers of newly registered cars and taxis may enjoy a rebate on the additional registration fee, or pay a surcharge depending on the VES band of the car model.
Meanwhile, the EEAI allows those who buy fully electric cars and taxis to receive a rebate on 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.
“The VES and EEAI have supported the adoption of cleaner energy vehicles, which has been on an upward trend over the past few years,” said LTA and NEA.
From January to August, 80 per cent of newly registered cars and taxis were cleaner energy models, with about half being electric models, they said.
“This is encouraging as EVs do not generate tailpipe emissions and are the cleanest vehicle option.”
Since 2021, more than 39,000 electric cars and taxis have benefited from the VES rebates and/or EEAI, according to NEA and LTA.
REVISIONS TO THE SCHEMES
The extended VES will see revisions to its bands, rebates and surcharges.
Only EVs will receive rebates while more pollutive vehicles will have higher surcharges. Hybrid vehicles will no longer receive rebates.
Vehicles currently in Band A2 will fall into the neutral band B under the revised VES banding structure, while vehicles currently in Bands B, C1 and C2 will fall into revised Bands C1, C2 and C3, respectively.
“There is no change to pollutant thresholds, and there will be a shift in the banding structure,” added LTA and NEA.
Continue reading...