Changes in rebates for electric vehicles to encourage cleaner energy adoption
The Electric Vehicle Early Adoption Incentive (EEAI) scheme has been extended until the end of 2025, though with a reduction in the rebate cap for the following year. Electric vehicles and taxis will continue to receive a 45% rebate off the Additional Registration Fee (ARF) until 2025, but this rebate will be capped at S$15,000 for 2024, down from the current S$20,000.
Additionally, the rebates under the Vehicular Emissions Scheme (VES), designed to promote cleaner energy vehicles, will be reduced. For Band A2 vehicles, which include models like the Honda Fit and Mitsubishi Attrage, the rebate will decrease from S$15,000 to S$5,000 in 2024. However, the S$25,000 rebate for Band A1 cars, such as the Nissan Leaf and Tesla Model 3, will remain unchanged.
These adjustments aim to continue incentivizing the adoption of cleaner energy vehicles while ensuring the rebates remain progressive. Starting from January 1, 2024, buyers of eligible electric cars could receive up to S$40,000 in combined rebates, reducing the cost of the ARF significantly.
The rebates are designed to bridge the cost gap between electric vehicles and traditional internal combustion engine cars, a crucial step as Singapore moves toward more sustainable transportation options. This initiative has already contributed to an increase in electric vehicle registrations, with electric cars accounting for 23% of new car registrations in August.
The government also plans to align with global standards in emissions and fuel consumption testing starting in 2024, further reinforcing the push for cleaner energy vehicles. The revisions will be reviewed annually, with the next round of changes expected in 2025.
