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SINGAPORE: Cleaner car and taxi buyers can get bigger discounts starting next year, while those buying higher emission vehicles can expect to pay higher surcharges, said the National Environment Agency (NEA) and the Authority. of Land Transportation (LTA) in a joint press release on Thursday (November 12).
These are included in the Enhanced Vehicle Emissions Scheme (VES), which will take effect on January 1, 2021 and will last until December 31, 2022.
The scheme was introduced in 2018 to encourage drivers to choose vehicles with fewer emissions of five pollutants, including carbon dioxide, hydrocarbons and carbon monoxide.
Discounts and surcharges are determined by the band of a vehicle according to the scheme: A1, A2, B, C1 or C2, with A1 being the cleanest and C2 the most polluting.
Under the improved VES, new cars and imported used cars in the A1 and A2 bands will see an increase of S $ 5,000 in rebates. Taxis on the same bands are eligible for S $ 7,500 more in rebates.
This brings refunds of S $ 25,000 for A1 cars and S $ 37,500 for A1 taxis, and S $ 15,000 for A2 cars and S $ 22,500 for A2 taxis.
With the EV Early Adoption Incentive starting January 1, buyers of new all-electric cars could save up to S $ 45,000, while buyers of new all-electric taxis can save up to S $ 57,500.
“The increased savings will encourage EV adoption by further reducing the initial cost gap between electric cars and their internal combustion engine equivalents,” NEA and LTA said.
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In his Budget 2020 speech, Deputy Prime Minister Heng Swee Keat announced that Singapore aimed to phase out the use of internal combustion engine vehicles here by 2040, and outlined a series of measures aimed at encouraging the use of more environmentally friendly alternatives. with the environment, such as electricity. vehicles.
Increases in reimbursements and surcharges under the Enhanced Vehicle Emissions Plan. (Table: National Environment Agency and Land Transportation Authority)
On the other hand, new cars and imported used cars in bands C1 and C2 will see surcharges increase by S $ 5,000 while taxis in the same bands will see surcharges increase by S $ 7,500.
This means that the surcharges will increase to S $ 15,000 for C1 cars and S $ 22,500 for C1 taxis, and S $ 25,000 for C2 cars and S $ 37,500 for C2 taxis.
The increase in surcharges will take effect on July 1, 2021, so the market has time to adjust.
Surcharges and refunds do not apply to Band B vehicles.
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“The VES, which went into effect on January 1, 2018, aims to encourage buyers to choose car models with fewer emissions of five pollutants. This helps reduce carbon emissions and improve ambient air quality, ”said NEA and LTA.
“The plan has been effective in encouraging the purchase of cleaner car models.”
New discounts and surcharges under the Enhanced Vehicle Emissions Scheme and Pollutant Level Guidelines for the five different vehicle bands. (Table: National Environment Agency and Land Transportation Authority)
Based on figures released by NEA and LTA for the period from Q3 2018 to Q1 2020, the number of new cars registered in Certificate of Ownership (COE) categories A and B that qualified for rebates of the A1 and A2 band was around 60 percent.
During the same period, the number of new cars subject to surcharges in the C1 and C2 bands fell by around 20 percent.
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The enhanced VES runs through December 31, 2022, and the scheme is likely to continue to evolve beyond that to further promote the use of cleaner vehicles.
“NEA and LTA regularly engage the vehicle industry in policies to reduce vehicle emissions and improve ambient air quality,” the agencies said.
“To this end, NEA will contact the industry in due course to inquire about the possibility of adjusting the thresholds for the VES bands in the future.”
More information about VES is available on the One Motoring website.
