Luxury ICE car buyers hit hardest as PARF rebate cap halves to $30,000

PARF cap cut 50% for high-end ICE buyers without COEs yet.

Fewer than 2,000 car buyers are expected to be affected by the recent changes to the Preferential Additional Registration Fee (PARF) rebate, Acting Minister for Transport Jeffrey Siow said during the Ministry of Transport’s Committee of Supply debate on 4 March.

Most affected buyers are purchasing higher-end internal combustion engine (ICE) vehicles, he noted.

Mr. Siow explained that the PARF rebate was originally designed to encourage early deregistration, keeping Singapore’s vehicle fleet younger, safer, and less polluting.

With electric vehicles becoming more common, the government determined there was less need for this incentive with the cap reduced to $30,000 from $60,000.

The Minister noted that vehicle taxes and rebates are applied at the point of registration rather than the point of sale, ensuring all buyers participating in a given Certificate of Entitlement (COE) bidding exercise are treated equally.

He added that transitional arrangements were considered, and dealers have been working with affected buyers to reach mutually acceptable solutions.

Mr. Siow said the government does not expect the change to significantly affect COE renewal behaviour, and that the adjustments align with the broader approach to market-sensitive tax changes implemented in 2023.

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