SINGAPORE will extend its incentive scheme for electric vehicles (EVs) by another year, while lowering the emissions rebate for hybrid cars.
Both the EV Early Adoption Incentive (EEAI) and the Vehicular Emissions Scheme (VES) will be extended until Dec 31, 2025, the Land Transport Authority (LTA) and the National Environment Agency (NEA) announced in a joint statement on Friday (Sep 20).
The EEAI quantum will remain the same, meaning that owners who register electric cars and taxis next year will continue to enjoy a rebate of 45 per cent off the additional registration fee, capped at S$15,000.
The S$0 Additional Registration Fee (ARF) floor for electric cars and taxis will also be extended until Dec 31, 2025.
Meanwhile, NEA will maintain the VES Band A1 rebate quantum, which mostly applies to electric cars and taxis, at S$25,000. But it will lower the VES Band A2 rebate quantum, which applies mostly to hybrid cars, to S$2,500, from S$5,000.
Taken together, buyers will continue to enjoy combined cost savings of up to S$40,000 off the ARF for electric cars. Most electric car models will enjoy the same level of rebates as they do now.
The EEAI was introduced in January 2021 and provided a 45 per cent rebate on an electric car or taxi’s ARF, up to a maximum of S$20,000. It was first extended in September last year, from January to December 2024, with the rebate capped at S$15,000.
The VES has been in effect since 2018. Cars and taxis are graded into different bands depending on their level of emissions of a range of pollutants. Cleaner vehicles receive rebates, while more polluting ones get surcharges. The emissions bands and surcharge amounts have changed over the years to encourage the adoption of cleaner vehicles.