To support the vision of having 100% cleaner energy vehicles by 2040, the LTA will continue to incentivise the adoption of cleaner energy vehicles, with an emphasis on EVs.

The Electric Vehicle (EV) Early Adoption Incentive (EEAI) scheme, which was supposed to end by the end of 2023, will be extended by two years till 31st December 2025. This will continue to provide rebates off the ARF for a newly-registered electric car, with revised rates of 45% off the ARF, at a revised cap of $15,000 (down from the existing $20,000), from 1st January 2024 to 31st December 2024. 

Expect no change to the EEAI quantum for most mass-market electric cars, which should further spur EV adoption.

Changes have also been made to the Vehicular Emissions Scheme (VES). The rebate applicable for the VES has also been extended to 31 December 2025, but will have some minor revisions. From 1 January 2024 to 31 December 2024, the VES Band A1 rebate for cars will remain at $25,000, while the VES Band A2 rebate for cars will be lowered to $5,000. 

Under the VES, buyers of newly-registered cars and taxis may enjoy a rebate off the ARF, subject to the minimum ARF payable where applicable, or pay a surcharge depending on the VES band of the car or taxi. The VES pollutant thresholds and surcharge applicable from 1 January 2024 to 31 December 2025, were previously announced on 30 June 2022. LTA will continue to review the VES rebates and EEAI applicable from 1 January 2025, and announce the quanta in 2024.

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