Joint News Release by the Land Transport Authority (LTA) & NEA - Sustained Government Support to Encourage Vehicle Electrification

News Releases 21 Sep 2023 Electric Vehicle (EV)

         To support the vision of 100% cleaner energy vehicles by 2040, the Land Transport Authority (LTA) and the National Environment Agency (NEA) will continue to incentivise the adoption of cleaner energy vehicles, with an emphasis on electric vehicles.

2        LTA will extend the Electric Vehicle (EV) Early Adoption Incentive (EEAI) scheme by two years while the rebate for cleaner energy cars under NEA’s Vehicular Emissions Scheme (VES) will be adjusted. The $0 Additional Registration Fee (ARF) floor for fully-electric cars and taxis will also be extended till 31 December 2024.

3        With the revised rebates in effect from 1 January 2024 till 31 December 2024, buyers will be able to enjoy combined cost savings of up to $40,000 off the ARF. Most mass market electric car models will enjoy the same level of rebates as today. Please refer to Annex A for an illustration of the updated EEAI and VES for different EV models. As the industry further develops, we will review the VES rebates and EEAI applicable from 1 January 2025, and announce the quanta in 2024.

4        Both the EEAI and the VES work in tandem to reduce the cost gap between cleaner energy cars (including electric and hybrid cars) and Internal Combustion Engine (ICE) cars, and have helped to boost adoption of cleaner energy cars. Cleaner energy car registration has increased to close to 70 per cent of all new car registrations in August 2023. Specifically, electric car registration has risen steadily on a monthly basis from January this year, to reach 23 per cent of new car registrations in August. Since 2021, more than 8,000 electric cars and taxis have received the VES rebates and/or EEAI.

Extension of EV Early Adoption Incentive (EEAI)

5        To sustain the momentum of electric car adoption, LTA will extend the EEAI by two years to 31 December 2025. The EEAI will continue to provide rebates off the ARF for a newly-registered electric car or taxi. From 1 January 2024 to 31 December 2024, owners who register fully-electric cars and taxis will receive a rebate of 45% off the ARF, at a revised cap of $15,000.

6        Buyers of most mass market electric car models will see no change in the EEAI quantum they receive – this will help to encourage the switch to electric cars, while ensuring the EEAI remains progressive.  

Adjustments to Vehicular Emissions Scheme (VES) Rebates

7          The VES aims to encourage the adoption of cleaner cars with lower emissions of carbon[1], hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter. Under the VES, buyers of newly-registered cars and taxis may enjoy a rebate off the ARF, subject to the minimum ARF payable where applicable, or pay a surcharge depending on the VES band of the car or taxi. The VES pollutant thresholds and surcharge applicable from 1 January 2024 to 31 December 2025, were previously announced on 30 June 2022.

8        The rebate applicable for the VES, which had been extended to 31 December 2025, will be adjusted. From 1 January 2024 to 31 December 2024, the VES Band A1 rebate for cars will remain at $25,000, while the VES Band A2 rebate for cars will be lowered to $5,000. Details are in Annex B. The revised VES rebates encourage the adoption of cleaner energy cars, with an emphasis on electric and other zero tailpipe emission cars.

Aligning with global standards

9        From 1 January 2024, Singapore will also adopt the Worldwide Harmonised Light Vehicles Test Procedure (WLTP) as the sole test procedure for new passenger cars and taxis[2}. The WLTP is a more rigorous test cycle that provides more realistic emissions results through a more representative simulation of on-road driving performance.

10       For more information on the EEAI or VES, please visit


About LTA

The Land Transport Authority (LTA) is a statutory board under the Ministry of Transport, which spearheads land transport developments in Singapore.  As the agency responsible for planning, designing, building and maintaining Singapore’s land transport infrastructure and systems, we aim to bring about a greener and more inclusive public transport system, complemented by convenient options to walk and cycle from their homes or to their destinations. We leverage technology to strengthen our rail and bus infrastructure and provide exciting options for future land transport. For more information, please visit the website at

About NEA

The National Environment Agency (NEA) is the leading public organisation responsible for ensuring a clean and sustainable environment for Singapore. Its key roles are to improve and sustain a clean environment, promote sustainability and resource efficiency, maintain high public health standards, provide timely and reliable meteorological information, and encourage a vibrant hawker culture. NEA works closely with its partners and the community to develop and spearhead environmental and public health initiatives and programmes. It is committed to motivating every individual to care for the environment as a way of life, in order to build a liveable and sustainable Singapore for present and future generations.

[1] The emissions factor (EF) for electric and plug-in hybrid cars will remain unchanged at 0.4g CO2/Wh of electricity till 31 December 2024.

[2] Other test procedures, such as the New European Driving Cycle (NEDC) and Japanese Driving Cycle (JC08), will no longer be accepted from 1 January 2024 for new passenger cars and taxis. The WLTP was adopted as the sole test procedure for new light commercial vehicles since 1 April 2023.

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