Electric vehicle rebates in Singapore extended until 2027, while incentives for hybrids phased out
Singapore's Land Transport Authority (LTA) and National Environment Agency (NEA) have announced an extension to the Vehicular Emissions Scheme (VES) and changes to the Electric Vehicle Early Adoption Incentive (EEAI) on September 8, 2022.
The VES, initially set to expire on December 31, 2023, will now be extended until December 31, 2027. This extension aims to encourage the adoption of cleaner-energy vehicles in Singapore.
Under the revised VES, models in Band C1 will face surcharges of S$7,500 in 2026, rising to S$15,000 in 2027. The most pollutive category, Band C3, will face the steepest surcharges of S$35,000 in 2026 and S$45,000 in 2027. Vehicles in the neutral Band B will neither receive rebates nor face surcharges.
From 2026, only electric vehicles (EVs) will qualify for rebates under the VES. Hybrid vehicles will no longer receive rebates. The rebates for the cleanest models in Band A under the revised VES will taper from S$22,500 in 2026 to S$20,000 in 2027.
The EEAI, which was initially scheduled to end on December 31, 2026, will be extended until the same date. For the EEAI, owners registering electric cars and taxis in 2026 will receive a rebate of 45% of the Additional Registration Fee (ARF), capped at S$7,500, compared to the current cap of S$15,000. The S$0 ARF floor for EVs under the EEAI will remain until the end of 2027.
The combined savings for buyers with both VES rebates and EEAI rebates may reach up to S$30,000 in 2026 and S$20,000 in 2027. Since 2021, more than 39,000 EVs have benefited from the VES and EEAI schemes.
Between January and August this year, 80% of newly registered cars and taxis in Singapore were cleaner-energy models, with about half being fully electric. Authorities have cautioned that Certificate of Entitlement (COE) prices may rise in the short term due to the increased demand for cleaner-energy vehicles.
The announcements are part of Singapore's government agencies' efforts to promote cleaner vehicle initiatives. The authorities have encouraged the public to consider EVs and other cleaner-energy vehicles to help reduce Singapore's carbon footprint and improve air quality.
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