The Land Transport Authority (LTA) is reviewing the Carbon Emissions-Based Vehicle Scheme (CEVS) scheme that rewards or penalises motorists based on a car's carbon emission (CO2) output. The scheme was introduced on the 1st of January last year and is projected to run until the end of June next year. Yet, according to The Straits Times, the scheme has been criticised for being lax, biased and ineffective.
Under the CEVS scheme, cars with low carbon emissions receive rebates of between $5,000 and $20,000, which are offset against the vehicle's Additional Registration Fee (ARF). However motorists have criticised this lowers the residual cost of the car.
According to motor traders the paper spoke to, European makes with small-capacity turbocharged direct injection engines have largely benefited from this scheme, while experts have questioned the effectiveness of CEVS in reducing air pollution.
Clarence Woo, Executive Director at Asian Clean Fuels Association, explained that lower CO2 emissions do not guarantee lower pollutants such as particulate matter. He also added that since the city-state plans to adopt the stringent Euro 6 emissions standard, the CEVS scheme could be refined towards meeting this objective.
LTA met motor industry representatives on Tuesday to inform them of the review and gather feedback, and it is understood several industry players have suggested rewards be delinked from ARF. Meanwhile, motorists have suggested tying rebates and penalties to road tax or income tax while observers believe the current scheme is not stringent enough as nearly two-thirds of new cars qualify for it.
LTA would not comment on what changes it is considering although a spokesman cited that the transport authority will share more details once the review is completed.
