LTA and NEA adjust EV schemes, hybrid car rebates removed while pollutive vehicles hit with more surcharges
The Land Transport Authority (LTA) and National Environment Agency (NEA) have announced major changes to Singapore’s electric vehicle (EV) schemes as the country races towards its target of a fully cleaner energy vehicle fleet by 2040.
In a joint press release on Monday (8 Sept), the agencies revealed extensions and adjustments to the Vehicular Emissions Scheme (VES) and the Electric Vehicle Early Adoption Incentive (EEAI).
Source: Land Transport Authority
Since 2021, more than 39,000 electric cars and taxis have benefited from these rebates, with EV adoption climbing steadily.
LTA highlighted that EVs remain the cleanest option on the road, as they produce zero tailpipe emissions.
“To achieve our vision of 100% cleaner energy vehicles by 2040, we’ll be extending and adjusting these schemes further,” the agency wrote on Facebook.
Hybrids lose perks, EVs maintain rebates
The agencies will extend the VES from 1 Jan 2026 to 31 Dec 2027. However, this extension will come with revisions to its banding, rebates, and surcharges.
Only EVs will continue to receive rebates, while hybrids will no longer qualify for incentives.
At the same time, pollutive vehicles will be hit with steeper surcharges.
Source: Land Transport Authority on Facebook
The EEAI will also be extended until 31 Dec 2026 before being phased out entirely.
However, rebates will be halved — those registering EVs in 2026 will receive a maximum rebate of S$7,500, down from S$15,000.
Source: Land Transport Authority on Facebook
Meanwhile, the S$0 Additional Registration Fee (ARF) floor for EVs will stay in place until 31 Dec 2027.
Source: Land Transport Authority on Facebook
The LTA also cautioned that Certificate of Entitlement (COE) prices may see short-term spikes, urging car buyers to bid prudently.
More information about the VES and EEAI can be found here.
Almost 40,000 EVs on the road today
In light of World EV Day on Tuesday (9 Sept), the LTA gave an update on Facebook regarding Singapore’s progress towards its Green Plan vision.
EV registrations have surged, with the nationwide EV population expanding by 52% since end-2024, bringing the total to nearly 40,000.
Charging has also become more accessible, with over 24,000 charging points already installed across the island.
Source: Land Transport Authority on Facebook
The push isn’t limited to private vehicles. LTA announced that more than 2,000 electric buses will join Singapore’s public fleet within the next five years as part of efforts to cut emissions.
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Featured image adapted from the Land Transport Authority on Facebook and the Land Transport Authority.
