As announced by Prime Minister and Minister for Finance Lawrence Wong in the Budget 2026 Statement, there will be revisions to the Preferential Additional Registration Fee (PARF) rebate schedule and cap for cars and taxis. PARF is intended to encourage the timely renewal of the vehicle population so that it is safer and less pollutive. Electric Vehicles (EVs) are less pollutive than conventional petrol cars. As EVs become more commonplace, the need to encourage early deregistration through the PARF rebate is reduced.
2. The revised PARF rebate schedule and cap are as follows:
Revision of Preferential Additional Registration Fee (PARF) Rebate Schedule and Cap
Age of PARF-eligible vehicle at deregistration |
Current PARF Rebate Amount |
Revised PARF Rebate Amount |
Not more than 5 years |
75% of ARF paid |
30% of ARF paid |
Above 5 but not more than 6 years |
70% of ARF paid |
25% of ARF paid |
Above 6 but not more than 7 years |
65% of ARF paid |
20% of ARF paid |
Above 7 but not more than 8 years |
60% of ARF paid |
15% of ARF paid |
Above 8 but not more than 9 years |
55% of ARF paid |
10% of ARF paid |
Above 9 but not more than 10 years |
50% of ARF paid |
5% of ARF paid |
More than 10 years |
Nil |
Nil |
PARF Rebate Cap |
$60,000 |
$30,000 |
3. The revised PARF rebate schedule and cap of $30,000 will apply to cars that are registered with COEs obtained from the second COE bidding exercise in February 2026 onwards. An example of the application of the revised PARF rebate schedule and cap can be found in Annex A.
4. For cars that do not need a COE for registration (e.g. taxis, COE-exempt cars), the revised PARF rebate schedule and cap of $30,000 will apply to those that are registered on or after 13 February.
5. The revised PARF rebate schedule and cap do not apply to vehicles that are not eligible for PARF rebates, such as Goods-cum-Passenger Vehicles (GPVs), classic and vintage cars, and vehicles that have been laid-up.
Annex A: Example of application of revised PARF rebate schedule and cap
