Increased in rebates and surcharges for cars starting Jan 2021

Cleaner car gets a rise in rebates while higher surcharges for pollutive ones

To further help Singapore phase out fossil fuel vehicles in the next 20 years, rebates and surcharges will be increased starting next year under Singapore’s Vehicular Emission Scheme (VES) for new cars, taxis, and imported used cars.

New Implementation

This scheme is introduced to encourage the adoption of cleaner vehicles while discouraging the purchases of more pollutive models.


Rebates on cleaner cars will be increased by $5000. While cleaner taxis will have their rebates increased by $7500, from 1 January 2021 to 31 December 2022.


Vice versa, surcharges for more pollutive cars will also be increased by $5000 for cars and $7500 for taxis. However, to allow time for the market to adjust, the increase in surcharges will kick in only from 1 July 2021 till 31 December 2022, the National Environment Agency (NEA) and the Land Transport Authority (LTA) said in a joint statement on Thursday (Nov 12).

Cleaner car gets a rise in rebates while higher surcharges for pollutive onesCredits: national environment agency

The VES was inaugurated in January 2018 to encourage Singaporeans to choose car models with lower emissions of carbon dioxide, hydrocarbons, carbon monoxide, nitrogen oxides, and particulate matter.


The scheme has successfully increased by around 60 per cent for rebates under VES Bands A1 and A2. Besides, the surcharges have fallen by around 20 per cent under the VES bands C1 and C2.


NEA and LTA said that they are engaging the vehicle industry regularly on policies to reduce vehicular emissions and improve ambient air quality. With that said, the enhanced VES will continue to evolve beyond that to further promote the use of cleaner vehicles.


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