- EEAI and VES Band A1 Rebates Maintained to Support Adoption of Electric Cars
- VES Band A2 Rebate Adjusted
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 from 1 January 2025 to 31 December 2025, with an emphasis on electric vehicles.
2. The LTA will maintain the existing EV Early Adoption Incentive (EEAI) quantum. Owners who register electric cars and taxis in 2025 will continue to receive a rebate of 45% off the Additional Registration Fee (ARF), capped at $15,000. The $0 Additional Registration Fee (ARF) floor for electric cars and taxis will also be extended till 31 December 2025.
3. The NEA will maintain the Vehicular Emissions Scheme[1] (VES) Band A1 rebate quantum for cars and taxis. The VES Band A1 rebate, which applies to most electric cars, will remain at $25,000. The VES Band A2 rebate, which applies mainly to hybrid cars, will be lowered from $5,000 to $2,500. Details are in Annex A.
4. With the revised VES rebates in effect and the continuation of the EEAI, buyers will continue to enjoy combined cost savings of up to $40,000 off the ARF for electric cars in the said period. Most electric car models will enjoy the same level of rebates as today. Please refer to Annex B for an illustration of the revised rebates for different EV models.
5. 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 around 80% of all new car registrations between January 2024 and August 2024. Specifically, new electric car registration in the same period accounted for around one-third of all new car registrations. Since 2021, about 20,000 electric cars and taxis have benefitted from the VES rebates and/or EEAI.
6. For more information on the EEAI or VES, please visit https://onemotoring.lta.gov.sg/content/onemotoring/home/buying/upfront-vehicle-costs/tax-structure.html.
Annex A: Revised Vehicular Emissions Scheme Rebates
Annex B: Illustration of Updated EV Early Adoption Incentive and Vehicular Emissions Scheme for Different Electric Car models
