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Thursday, November 12, 2020 – 12:36 pm
REFUNDS and surcharges will increase from next year under Singapore’s Vehicle Emissions Scheme (VES) for new cars and taxis as well as imported used cars.
This is to promote the adoption of cleaner vehicles and discourage the purchase of more polluting models.
Depending on the pollutant levels of a vehicle, buyers can receive a refund or pay a surcharge under the scheme.
The enhanced emissions rebates will take effect on January 1, 2021 through December 31, 2022, the National Environment Agency (NEA) and the Land Transportation Authority said in a joint statement Thursday.
The increase in surcharges will take effect only on July 1, 2021 and will last until December 31, 2022, to allow time for the market to adjust.
Refunds for vehicles in the A1 and A2 bands will be increased by S $ 5,000 for cars and S $ 7,500 for taxis starting next January.
That means that a person who buys an A1 car will receive a refund of S $ 25,000 instead of S $ 20,000, while an A2 car will attract a refund of S $ 15,000 instead of S $ 10,000.
The enhanced VES in conjunction with the Electric Vehicle Early Adoption Incentive (EEAI) will offer buyers combined cost savings of up to S $ 45,000 when purchasing a new all-electric car and up to S $ 57,500 for a new all-electric taxi.
These greater savings will encourage the adoption of electric vehicles (EVs), further reducing the initial cost gap between electric cars and their internal combustion engine equivalents, according to the statement.
The EEAI, effective from January 1, 2021 to December 31, 2023, offers a 45 percent discount, capped at Singapore $ 20,000, on the additional registration fee for the purchase of a fully car or taxi new electric.
Meanwhile, surcharges for vehicles in the C1 and C2 bands will increase by S $ 5,000 for cars and S $ 7,500 for taxis, starting next July.
That means a C1 car will incur a surcharge of S $ 15,000 instead of S $ 10,000, while a C2 car will have a surcharge of S $ 25,000 instead of S $ 20,000.
There will be no changes to the contamination criteria for each VES band for the duration of the enhanced scheme, until the end of 2022.
Band B vehicles do not include discounts or surcharges according to the scheme.
The VES was implemented in January 2018 to encourage buyers to choose car models with lower emissions of five pollutants: carbon dioxide, hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.
Regarding additional government plans to promote cleaner vehicles, NEA said it will contact the vehicle industry in due course to inquire about the possibility of adjusting the thresholds for the VES band.
Separately, Singaporean utility company SP Group and South Korean automaker Hyundai Motor Group will jointly develop a new business model for electric vehicle battery leasing.
The new model, called battery-as-a-service, is said to be the first in Southeast Asia and will allow electric vehicle users to rent the car’s battery rather than own it.
SP Group and Hyundai announced on Thursday that they have signed a business cooperation agreement for this union, with the aim of accelerating the adoption of electric vehicles in Singapore.
Both companies will also conduct a study on the use of the battery of electric vehicles and the improvement of the ownership experience for consumers.
In addition, they seek to expand the electric vehicle charging infrastructure and develop new solutions for the reuse and recycling of batteries to achieve carbon neutrality.
SP and Hyundai said they hope to reduce the initial cost of purchasing electric vehicles, as well as make charging points and low-carbon mobility solutions more accessible to vehicle owners in Singapore.
Hyundai last month announced a S $ 400 million innovation center in Jurong, which can produce up to 30,000 vehicles per year by 2025.
The South Korean firm said on Thursday that it will intensify its efforts to expand the supply of electric vehicles in Singapore in cooperation with SP, which is increasing its network of electric vehicle charging infrastructure.
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