[ad_1]
SINGAPORE – Rebates on the purchase of cleaner cars will increase by $ 5,000 from January 1 of next year to December 31, 2022 under the Vehicle Emissions Scheme (VES).
Cleaner cabs will see their refunds increased by $ 7,500 in the same time period, under the program aimed at pushing drivers toward more environmentally friendly private transportation models.
In addition, the most polluting car surcharges will also increase by $ 5,000 for cars and $ 7,500 for taxis, on the carrot and stick model.
This will take effect on July 1, 2021, rather than the beginning of the year to allow time for the market to adjust, and will be in effect until December 31, 2022, the National Environment Agency (NEA) and the Authority Land Transportation (LTA) said in a joint statement on Thursday (Nov 12).
Officials say the move will help guide Singapore toward its goal of phasing out internal combustion engine vehicles by 2040.
The increase in rebates and surcharges means that buyers of cleanest cars will receive rebates of up to $ 25,000, up from the previous $ 20,000, while buyers of the most polluting cars will be penalized $ 25,000, also above those. $ 20,000.
[[nid:500685]]The VES scheme was introduced in 2018 to reduce carbon emissions on Singapore’s roads.
It classifies vehicles according to the emissions of five pollutants, with the discount or surcharge for each category calibrated accordingly.
The NEA and LTA said they have been effective in encouraging the purchase of cleaner car models, with a 60 percent increase in the number of new cars qualifying for the two cleanest bands between the third quarter of 2018 and the first quarter of this year.
The number of those in the two most polluting bands has fallen by around 20 percent in the same time period.
Singapore University of Social Sciences Associate Professor of Economics Walter Theseira said that VES rebates and surcharges could drive drivers towards the adoption of cleaner cars in two ways.
Because car dealerships in Singapore usually quote a price that includes all taxes and the Certificate of Entitlement (COE) bidding, some of the discounts generally go to car buyers, while some could go to dealers.
This means that in addition to consumers getting a discount, the VES changes could also influence car dealers to import cleaner models.
The cleanest cars include the Hyundai Kona Electric, Renault Zoe, and Toyota Prius Plus, while the most polluting cars are those like the Mitsubishi Outlander 2.0 CVT, Mazda CX-5 2.5 AT, and Porsche Cayenne E3.
[[nid:504522]]The improved VES is also a boon for aspiring electric car buyers, whose car models often fall under the cleaner bands.
Along with the early adoption incentive scheme for EV buyers announced by the LTA in February, which offers rebates capped at $ 20,000 per vehicle, the increased rebates under the VES will allow savings of up to $ 45,000 for each new fully electric car.
However, Professor Theseira noted that there are additional factors to consider with regard to electric vehicles.
“The number of models of electric vehicles is still very limited compared to that of internal combustion engines. Electric vehicles also require the owner to have charge available. I think until these two are resolved, the VES change will have minimal effect, “he said.
Transport Minister Ong Ye Kung said on Thursday that industry observers believe costs for motorists choosing between electric vehicles and internal combustion engine vehicles will equalize around 2025, or sooner.
Electric models are now still generally more expensive, and there were only 1,125 electric cars on the road in January 2020.
