New Vehicular Emissions Scheme and restructured diesel taxes
20 Feb 2017|20,455 views
The current Carbon Emissions-based Vehicle Scheme (CEVS), which was implemented in 2013 with the aim of encouraging use of vehicles with low carbon emissions, will be replaced with a new Vehicular Emissions Scheme. Under this scheme, four more pollutants will be considered on top of carbon dioxide. The new scheme will run for two years beginning from 1st January 2018. This will be reviewed before it expires. Meanwhile, the current CEVS will be extended to 31st December 2017.
The Certificate of Entitlement bonus period for Light Goods Vehicles will be further enhanced, with more details revealed at a later date. Singapore in 2016 joined more than 120 countries to ratify the Paris Agreement, formally committing itself to reduce climate change. As part of the agreement, Singapore pledged to cut emissions intensity by 36 percent below 2005 levels by 2030 and stabilise emissions with the aim of peaking around 2030.
Finance Minister Heng Swee Keat also announced that the Government will restructure diesel taxes. It will introduce a volume-based duty at $0.10 per litre on automotive diesel, industrial diesel and the diesel component in biodiesel. This is to incentivise users to reduce diesel consumption. These changes took effect on Monday (February 20th). Currently, diesel cars and taxis are levied a lump sum Special Tax, regardless of the amount of diesel used.
"At the same time, I will permanently reduce the annual Special Tax on diesel cars and taxis by $100 and $850 respectively. In this way, we shift from an annual amount of tax to one, which is related to usage." For most drivers, the Special Tax reduction will offset the impact of the new diesel duty. "To help businesses adjust, I will provide 100 percent road tax rebate for one year, and partial road tax rebate for another two years, for commercial diesel vehicles," said Mr. Heng. Diesel buses that ferry school children will receive additional cash rebates.
VES Banding Rebates and Surcharges
| Bands | Co2(g/km) | HC(g/km) | CO(g/km) | NOx(g/km) | PM(g/km) | Rebate/ surcharge(-/+) for cars ($) | Rebate/ surcharge (-/+) for taxis ($) |
| A1 | A1 <=90 | A1 <=0.020 | A1 <=0.150 | A1 <=0.007 | A1=0.0 | -20,000 | -30,000 |
| A2 | 90<A2<=125 | 0.020<A2 <=0.036 | 0.150<A2 <=0.190 | 0.007<A2 <=0.013 | 0.0<A2<=0.3 | -10,000 | -15,000 |
| B | 125<B<=160 | 0.036<B <=0.052 | 0.190<B <=0.024 | 0.013<B <=0.024 | 0.3<B<=0.5 | 0 | 0 |
| C1 | 160<C1<=185 | 0.052<C1 <=0.075 | 0.270<C1 <=0.350 | 0.024<C1 <=0.030 | 0.5<C1<=2.0 | +10,000 | +15,000 |
| C2 | C2>185 | C2>0.075 | C2>0.350 | C2>0.030 | C2>2.0 | +20,000 | +30,000 |
The current Carbon Emissions-based Vehicle Scheme (CEVS), which was implemented in 2013 with the aim of encouraging use of vehicles with low carbon emissions, will be replaced with a new Vehicular Emissions Scheme. Under this scheme, four more pollutants will be considered on top of carbon dioxide. The new scheme will run for two years beginning from 1st January 2018. This will be reviewed before it expires. Meanwhile, the current CEVS will be extended to 31st December 2017.
The second scheme to be adjusted is the Early Turnover Scheme, which targets commercial diesel vehicles. It was introduced in 2013 to encourage the early replacement of older and more pollutive commercial diesel vehicles. The scheme, which has seen owners of 27,000 vehicles switch to cleaner models, is due to expire on 31st July this year. It will be extended for vehicle owners who turn over their existing Euro II and III commercial diesel vehicles for Euro VI vehicles until 31st July in 2019.
The Certificate of Entitlement bonus period for Light Goods Vehicles will be further enhanced, with more details revealed at a later date. Singapore in 2016 joined more than 120 countries to ratify the Paris Agreement, formally committing itself to reduce climate change. As part of the agreement, Singapore pledged to cut emissions intensity by 36 percent below 2005 levels by 2030 and stabilise emissions with the aim of peaking around 2030.
Finance Minister Heng Swee Keat also announced that the Government will restructure diesel taxes. It will introduce a volume-based duty at $0.10 per litre on automotive diesel, industrial diesel and the diesel component in biodiesel. This is to incentivise users to reduce diesel consumption. These changes took effect on Monday (February 20th). Currently, diesel cars and taxis are levied a lump sum Special Tax, regardless of the amount of diesel used.
"At the same time, I will permanently reduce the annual Special Tax on diesel cars and taxis by $100 and $850 respectively. In this way, we shift from an annual amount of tax to one, which is related to usage." For most drivers, the Special Tax reduction will offset the impact of the new diesel duty. "To help businesses adjust, I will provide 100 percent road tax rebate for one year, and partial road tax rebate for another two years, for commercial diesel vehicles," said Mr. Heng. Diesel buses that ferry school children will receive additional cash rebates.
VES Banding Rebates and Surcharges
| Bands | Co2(g/km) | HC(g/km) | CO(g/km) | NOx(g/km) | PM(g/km) | Rebate/ surcharge(-/+) for cars ($) | Rebate/ surcharge (-/+) for taxis ($) |
| A1 | A1 <=90 | A1 <=0.020 | A1 <=0.150 | A1 <=0.007 | A1=0.0 | -20,000 | -30,000 |
| A2 | 90<A2<=125 | 0.020<A2 <=0.036 | 0.150<A2 <=0.190 | 0.007<A2 <=0.013 | 0.0<A2<=0.3 | -10,000 | -15,000 |
| B | 125<B<=160 | 0.036<B <=0.052 | 0.190<B <=0.024 | 0.013<B <=0.024 | 0.3<B<=0.5 | 0 | 0 |
| C1 | 160<C1<=185 | 0.052<C1 <=0.075 | 0.270<C1 <=0.350 | 0.024<C1 <=0.030 | 0.5<C1<=2.0 | +10,000 | +15,000 |
| C2 | C2>185 | C2>0.075 | C2>0.350 | C2>0.030 | C2>2.0 | +20,000 | +30,000 |
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