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The Vehicular Emissions Scheme will expire at the end of this year, but the National Environment Agency has not yet announced future plans.

23 Apr 2019 | Local News : Singapore


The Vehicular Emissions Scheme (VES), which rewards or penalises car buyers according to the pollutants their purchases produce, will expire at the end of this year, but there is still no word on whether it will be extended or made even more stringent.

The NEA has been encouraging car buyers to purchase cleaner cars determined by stringent emissions tests
In response to queries from The Straits Times, the National Environment Agency (NEA) said, "We will announce future plans for the scheme when ready and ahead of its expiry, taking into account feedback from the public and the industry, the scheme's impact on motorists' purchasing decisions and technological advances in vehicles."

Singapore has been using a taxation strategy to encourage cleaner cars here since 2001. The latest VES, which came into effect on 1 January last year, categorises cars according to five key pollutant levels.

While it is one of the most stringent schemes of its kind worldwide, it is widely criticised here for, among other things, allowing car importers an unlimited number of retests for any one pollutant reading that is unfavourable.

With just eight months to the scheme's expiry, car importers are worried that a change would render existing vehicle stock less competitive if they are unable to react in time. Many reckon they need a year's notice to prepare their inventory.

But some dealers said the absence of news could mean that the scheme will be extended with little or no change. "I don't expect a huge change, except maybe incentivising electric cars more," said a dealer who declined to be named.
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