Singapore will reduce rebates for hybrid vehicles while extending existing incentives for all cleaner energy vehicles in a bid to further encourage the adoption of electric vehicles ( EVs ).
In a joint press release on Friday ( Sep 20 ), the Land Transport Authority ( LTA ) and the National Environment Agency ( NEA ) announced that the Vehicular Emission Scheme (VES ) Band A2 rebate will be lowered from S$ 5, 000 ( US$ 3, 870 ) to S$ 2, 500 in 2025.
The Band A2 discount, which is usually applied to hybrid cars, usually comes with both an internal combustion engine and an electric motors.
However, the recent VES Band A1 return of S$ 25, 000, which generally applies to most electric vehicles, may be maintained.
Users of newly registered cars and vehicles may be eligible for a rebate on the Extra Registration Fee ( ARF), subject to any applicable minimum ARF, or be subject to a fee based on the car VES group.
The Woof is a tax that is due when a car is registered and is determined based on the cost of an imported car into Singapore.
The VES, which is run by NEA, seeks to promote the use of cleaner cars that produce fewer emissions of coal, hydrocarbons, carbon monoxide, nitrogen oxide, and fine problem.
The EV Early Adoption Initiative ( EEAI ) will be extended to December 2025, which LTA first announced in September 2023.
TheEEAI, which was first introduced in 2021, offers customers of fully electric cars and taxis a discount of up to 45 % on the ARF.
Owners who register electric vehicles and cars in 2025 will continue to receive a 44 % discount on the ARF, which is capped at S$ 15, 000, according to LTA in the joint press release.  ,
The authorities added in the joint statement that the S$ 0 Additional Registration Fee ( ARF ) floor for electric cars and taxis will also be extended until Dec. 31, 2025.  ,
The EEAI and VES work together to close the price gap between cleaner energy vehicles ( including electric and hybrid cars ) and internal combustion engines ( ICE ) vehicles, according to the statement.
Customers of EVs may receive up to S$ 40, 000 in subsidies with the revised VES subsidies in place and the progression of the EEAI.  ,
Between January 2024 and August 2024, cleaner energy car registrations accounted for approximately 80 % of all new vehicle registrations, according to the two organizations. New electric car registrations also accounted for roughly one-third of all new car registrations during this time.
Since 2021, about 20, 000 energy trucks and cars have benefitted from the VES subsidies and EEAI.