LTA and NEA to extend CVES and ETS schemes

In a bid to encourage the adoption of cleaner commercial vehicles, LTA and NEA have announced that incentives for vehicles in Band A under the Commercial Vehicle Emissions Scheme (CVES) will be extended for two years, from 1 April 2025 to 31 March 2027. In addition, the Early Turnover Scheme (ETS) will be extended for Heavy Commercial Vehicles (HCV) till 31 December 2025.

Introduced in April 2021, the CVES applies to all new and used imported Light Commercial Vehicles (LCVs), with the maximum laden weight not exceeding 3,500kg. 

Under CVES, vehicles are classified into bands based on their worst-performing pollutant, and will then be granted an incentive or a surcharge. 

Incentives for commercial vehicles in Band A (EVs) will remain at $15,000, but will be removed in Band B (petrol vehicles). Meanwhile, the surcharge for Band C (mainly diesel vehicles) will rise to $20,000 (up from $15,000), in line with the government's vision to have all vehicles run on cleaner energy by 2040.

The ETS was introduced in April 2013 to promote the replacement of older, more pollutive diesel commercial vehicles and buses, and provides a discount off the Prevailing Quota Premium. It will be extended till 31 December 2025 and will cease thereafter.

In addition, as previously announced, the ETS for LCVs will cease after 31 March 2025.