More time but tighter rebate caps for early EV adopters

Support for the adoption of cleaner energy vehicles, in particular Electric Vehicles (EVs), will continue through 2025, announced the LTA and NEA in a joint press release on 21 September 2023. Initiatives that will be revitalised as part of this move include the LTA's Electric Vehicle Early Adoption Incentive (EEAI) scheme and NEA's Vehicular Emissions Scheme (VES). 

To encourage the sustained uptake of electrified vehicles locally, the LTA will extend its EEAI scheme - previously due to end this year - to end-2025, while the NEA has adjusted its VES rebates. The $0 Additional Registration Fee (ARF) floor for fully electric cars and taxis will also be extended until the end of 2024. 

From 2024, the cap for the rebates from the EV Early Adoption Scheme will be reduced to $15,000, while the Vehicular Emissions Scheme Band A2 rebate for private cars will be reduced to $5,000

Under the EEAI, newly registered electric cars and taxis receive a 45% rebate off the ARF, up to a maximum of $20,000. This cap will be revised downwards to $15,000 in 2024 with the extension of the scheme. Despite the lower quantum ceiling, LTA expects there to be no difference in the amount of incentive received by buyers of mass market electric car models. This change will ensure the EEAI facilitates the transition to electric cars in a progressive manner, added LTA and NEA. 

The VES complements the EEAI scheme through qualifying owners of vehicles with less pollutive emissions for increased concessions in the ARF they need to pay. It works on a banding system, where registered cars and taxis are sorted into five VES bands (Band A1, A2, B, C1 and C2) based on the pollutants emitted. Bands A1 and A2 qualify vehicles for an emission rebate, which can be used to offset the ARF, whereas Bands C1 and C2 impose an emission surcharge on the car or taxi. The VES pollutant thresholds and surcharge will apply to all vehicles registered between 2024 and 2025. 

Early adopters of clean energy vehicles could save up to $40,000 thanks to the revised rebates

Along with the revision to the EEAI scheme, adjustments are also being made to the VES Band A2 rebate quanta. The new rebate for the band will be reduced to $5,000 for cars and $7,500 for taxis.

Combined, both the revised schemes mean those who purchase new cars will be able to enjoy cost savings of up to $40,000 off the ARF. This move could be seen as an attempt to spur the adoption of cleaner energy cars, especially electric and other zero tailpipe emission cars, in the VES Band A1. 

The EEAI and VES came into force on 1 January 2021 to narrow the cost gap between cleaner energy cars and those that run on internal combustion engines. LTA and NEA said another review is in the pipeline for the EEAI quantum cap and VES rebates that will prevail in 2025. 

Adding to the localised strategies geared at propelling Singapore towards realising its vision of a 100% cleaner energy vehicle population by 2040 is our adoption of the Worldwide Harmonised Light Vehicles Test Procedure (WLTP). From 1 January 2024, the WLTP - a rigorous test cycle that generates emission results more representative of on-road driving performance - will be the sole procedure for new passenger cars and taxis.