The Land Transport Authority has announced significant revisions to the Vehicular Emission Scheme (VES), introducing stricter emission bands that will take effect from January 2027. The updated scheme expands from the current five bands to seven, providing finer-grained incentives and penalties based on a vehicle's emissions profile.
Under the new framework, the cleanest vehicles can receive rebates of up to S$25,000 (up from the current S$20,000 maximum), while the most polluting vehicles will face surcharges of up to S$30,000. Electric and hydrogen fuel cell vehicles will automatically qualify for the maximum A1 band rebate.
The changes are expected to accelerate the shift towards cleaner vehicles, particularly in Categories A and B where the rebate amounts can significantly reduce the effective purchase price. However, some hybrid models currently in the neutral band may find themselves pushed into surcharge territory, potentially affecting their competitiveness.
Comments (0)