Changes to the Carbon Emissions-based Vehicle Scheme (CEVS), effective from July, mean fewer cars will get rebates while the surcharges on less 'green' vehicles will be much heftier, reported The Straits Times. Many motor traders had felt the two-year old scheme was too lax and had anticipated the alterations announced yesterday.
Car dealer and taxi operator Neo Nam Heng said, "Even big and luxurious cars from Mercedes-Benz, Audi and BMW are entitled to rebates. I don't think that was the intent of the scheme."
Finance Minister Tharman Shanmugaratnam said nearly two-thirds of new cars registered last year qualified for rebates, which ranged from $5,000 to $20,000 for cars and $7,500 to $30,000 for taxis. And only five percent attracted surcharges. The rest were in the neutral band, attracting neither incentives nor disincentives.
Under the revised scheme, cars and cabs must emit no more than 135g/km of CO2 to qualify for a rebate - down from 160g/km previously.
The new maximum rebate will be $30,000 for cars and $45,000 for cabs if they emit no more than 95g/km of carbon. The top rebates now are $20,000 for cars and $30,000 for cabs that emit no more than 100g/km of carbon. Electric cars, petrol-electric hybrids and diesel models will be among those that qualify for the revised top-tier incentive.
But more cars will attract penalties from July, starting with those that emit more than 185g/km of CO2. This is down from the cut-off of 210g/km now. The $5,000 surcharge will apply to the Audi A7 Sportback, Honda Odyssey, Porsche Boxster, Lexus ES250 and Volvo S60 T5, among others. Vehicles that will incur the heftiest surcharge of $30,000 ($45,000 for cabs) include the Volvo XC90, the Ferrari 458 and the Rolls-Royce Wraith.
| REVISED CEVS BANDINGS | |||||
| Band | Carbon emission (CO2 g/km) | REBATES (FROM 1 JULY 2015) | SURCHARGES (FROM 1 JULY 2015) | ||
| Cars | Taxis | Cars | Taxis | ||
| A1 | 0 to 95 | $30,000 | $45,000 | N.A. | N.A. |
| A2 | 96 to 105 | $15,000 | $22,500 | N.A. | N.A. |
| A3 | 106 to 120 | $10,000 | $15,000 | N.A. | N.A. |
| A4 | 121 to 135 | $5,000 | $7,500 | N.A. | N.A. |
| B | 136 to 185 | $0 | $0 | $0 | $0 |
| C1 | 186 to 200 | N.A. | N.A. | $5,000 | $7,500 |
| C2 | 201 to 215 | N.A. | N.A. | $10,000 | $15,000 |
| C3 | 216 to 230 | N.A. | N.A. | $15,000 | $22,500 |
| C4 | 230 & above | N.A. | N.A. | $30,000 | $45,000 |
