LTA to revise VES and extend EEAI

To support Singapore's vision of 100% cleaner-energy vehicles by 2040, the LTA and NEA have announced that it will extend the Vehicular Emissions Scheme (VES) from 1 January 2026 to 31 December 2027. The EV Early Adoption Incentive (EEAI) will also be extended until 31 December 2026 and be ceased from 1 January 2027.

The LTA has also said that the NEA will continue to support the take-up of electric cars, including taxis, by extending the VES for another two years from 1 January 2026 to 31 December 2027 with revised bands, rebates, and surcharges. Only EVs will receive rebates. Hybrid vehicles will no longer receive rebates, while more pollutive vehicles will have higher surcharges.

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.

As adoption of EVs increases and the upfront cost gap between electric and Internal Combustion Engine (ICE) cars and taxis narrows, LTA will extend the EEAI until 31 December 2026 and cease the incentive thereafter. Owners who register electric cars and taxis in 2026 will receive a rebate of 45% off the Additional Registration Fee (ARF) capped at $7,500, down from $15,000.

With the revised EEAI and VES, buyers will receive combined cost savings of up to $30,000 and $20,000 off the ARF for electric cars registered in 2026 and 2027, respectively. The $0 ARF floor for electric cars and taxis will also be maintained until 31 December 2027. The overall benefits will continue to be tapered as Singapore gets closer to 100% cleaner energy vehicles by 2040, in support of its national target to achieve net-zero emissions by 2050.