Rebate for VES A2 cars to be lowered come 2025
21 Sep 2024|418 views
The LTA and the National Environmental Agency have announced that the rebate offered for cars that fall under Band A2 of the Vehicular Emissions Scheme will be lowered from $5,000 to $2,500, starting from 1 January 2025.
The rebate quantum for vehicles that fall under the scheme's Band A1, meanwhile, will remain at $25,000 for the year 2025. A table outlining the changes to the rebates under the scheme is reproduced in the table here:
| Band |
VES Schedule from 1 January to 31 December 2025 Rebate/Surcharge (-/+) for Cars (changes in red) |
| A1 | -$25,000 |
| A2 | -$2,500 |
| B | - |
| C1 | +$15,000 |
| C2 | +$25,000 |
Despite this change, the LTA will maintain the existing EV Early Adoption Incentive for 2025. Under this incentive, owners who register electric cars and taxis will receive a rebate of 45% off the Additional Registration Fee, capped at $15,000. The $0 Additional Registration Fee floor for electric cars and taxis will also be extended till 31 December 2025.
The LTA states that car buyers here will continue to enjoy combined cost savings of up to $40,000 off the ARF for electric cars come 2025 despite the changes to the VES rebates, and expects most electric car models to continue to be offered with the same level of rebates as today.
The LTA and the National Environmental Agency have announced that the rebate offered for cars that fall under Band A2 of the Vehicular Emissions Scheme will be lowered from $5,000 to $2,500, starting from 1 January 2025.
The rebate quantum for vehicles that fall under the scheme's Band A1, meanwhile, will remain at $25,000 for the year 2025. A table outlining the changes to the rebates under the scheme is reproduced in the table here:
| Band |
VES Schedule from 1 January to 31 December 2025 Rebate/Surcharge (-/+) for Cars (changes in red) |
| A1 | -$25,000 |
| A2 | -$2,500 |
| B | - |
| C1 | +$15,000 |
| C2 | +$25,000 |
Despite this change, the LTA will maintain the existing EV Early Adoption Incentive for 2025. Under this incentive, owners who register electric cars and taxis will receive a rebate of 45% off the Additional Registration Fee, capped at $15,000. The $0 Additional Registration Fee floor for electric cars and taxis will also be extended till 31 December 2025.
The LTA states that car buyers here will continue to enjoy combined cost savings of up to $40,000 off the ARF for electric cars come 2025 despite the changes to the VES rebates, and expects most electric car models to continue to be offered with the same level of rebates as today.
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