SINGAPORE, Sept 8 — Singapore will reportedly extend two key schemes encouraging the use of cleaner vehicles, with new rebates and surcharges to take effect from 2026.
According to Singapore’s CNA, the city-state’s Land Transport Authority (LTA) and National Environment Agency (NEA) said today that the Vehicular Emissions Scheme (VES) will run from January 1, 2026 to December 31, 2027.
Meanwhile, the Electric Vehicle Early Adoption Incentive (EEAI) will be extended until December 31, 2026 before being phased out.
From 2026, only electric vehicles will qualify for rebates under the VES, while hybrids will no longer receive such benefits. More pollutive vehicles will face higher surcharges.
Under the revised VES, rebates for the cleanest models in Band A will taper from S$22,500 (RM74,000) in 2026 to S$20,000 in 2027. Vehicles in the neutral Band B will neither receive rebates nor face surcharges.
Higher-emission cars will be penalised more heavily. Models in Band C1 will face surcharges of S$7,500 in 2026, rising to S$15,000 in 2027. Those in Band C3, the most pollutive category, will face the steepest surcharges of S$35,000 in 2026 and S$45,000 in 2027.
For the EEAI, owners registering electric cars and taxis in 2026 will receive a rebate of 45 per cent of the Additional Registration Fee (ARF), capped at S$7,500, compared to the current cap of S$15,000. Combined with VES rebates, buyers may save up to S$30,000 in 2026 and S$20,000 in 2027. The S$0 ARF floor for EVs will remain until the end of 2027.
Authorities also cautioned that Certificate of Entitlement (COE) prices may rise in the short term and urged buyers to bid prudently.
Between January and August this year, 80 per cent of newly registered cars and taxis in Singapore were cleaner-energy models, with about half being fully electric. Since 2021, more than 39,000 EVs have benefited from the schemes.
