Overview
- Under revised VES rules, only fully electric vehicles will qualify for rebates as hybrids lose eligibility and higher surcharges hit more-polluting models.
- The EEAI will continue through 2026 at a reduced level of 45% off ARF capped at S$7,500, then cease from Jan 1, 2027.
- Regulators will shift VES banding in 2026, moving current A2 models to neutral Band B and pushing B, C1 and C2 vehicles into higher-surcharge Bands C1, C2 and C3.
- For EVs registered in 2026 and 2027, combined VES and EEAI savings will be up to S$30,000 and S$20,000 respectively, with the S$0 ARF floor for EVs and taxis maintained through 2027.
- LTA and NEA expect a short-term rise in COE prices and urge potential buyers to bid prudently.