LTA and NEA impose two-year extension for EV incentives
The electric vehicle (EV) early adoption incentive (EEAI) scheme was extended.
The Land Transport Authority (LTA) and National Environment Agency (NEA) will continue to implement incentive vehicle electrification schemes by two years to defray the costs of buying EVs.
The Electric Vehicle (EV) Early Adoption Incentive (EEAI) scheme by two years will be prolonged whilst the rebate for cleaner energy cars under NEA’s Vehicular Emissions Scheme (VES) will be adjusted.
The $0 Additional Registration Fee (ARF) floor for fully electric cars and taxis will also be extended until the year-end of 2024.
With the revised rebates in effect from 1 January 2024 till 31 December 2024, buyers can save up to $40,000 off the ARF.
Most mass-market electric car models will enjoy the same level of rebates. As the industry further develops, LTA and
NEA will review the VES rebates and EEAI applicable from 1 January 2025, and announce the quanta in 2024.
Cleaner energy car registration rose to nearly 70% of all new car registrations in August 2023. Electric car registrations went up steadily on a monthly basis from January this year, to reach 23% of new car registrations in August. Since 2021, more than 8,000 electric cars and taxis have received the VES rebates or EEAI.
LTA will also extend the EEAI by two years to 31 December 2025. The EEAI will continue to provide rebates off the ARF for a newly registered electric car or taxi. From 1 January 2024 to 31 December 2024, owners who register fully-electric vehicles and taxis will get a rebate of 45% off the ARF, at a revised cap of $15,000.
“Buyers of most mass-market electric car models will see no change in the EEAI quantum they receive – this will help to encourage the switch to electric cars while ensuring the EEAI remains progressive,” read the statement.
Vehicular emissions scheme (VES) rebates adjusted
The rebate structure for the VES was also adjusted from January 1, 2024, to December 31, 2024. The rebate for VES Band A1 cars will remain at $25,000, whilst the rebate for VES Band A2 cars will be reduced to $5,000.
These revised VES rebates will encourage the adoption of cleaner energy vehicles, with a particular emphasis on electric and other zero-tailpipe emission cars.