Singapore will extend its electric vehicle incentive programmes to support the adoption of cleaner-energy vehicles and reduce transport emissions.

The Land Transport Authority (LTA) and National Environment Agency (NEA) have announced that the Vehicular Emissions Scheme (VES) will be extended from 1st January 2026 to 31st December 2027. The EV Early Adoption Incentive (EEAI) will also be extended until 31st December 2026 and will end from 1st January 2027.

The LTA stated that the NEA will continue to promote the adoption of electric vehicles, including taxis, by extending the VES for two additional years with revised bands, rebates, and surcharges.

Only fully electric vehicles will be eligible for rebates. Hybrid vehicles will no longer receive rebates, while higher-polluting vehicles will face increased surcharges.

Under the revised VES banding structure, vehicles currently classified in Band A2 will be reclassified into the neutral Band B, while vehicles currently in Bands B, C1, and C2 will be reclassified into Bands C1, C2, and C3, respectively. Pollutant thresholds remain unchanged, with only the banding structure adjusted.

As electric vehicle adoption increases and the upfront cost gap between electric and internal combustion engine vehicles narrows, the EEAI will be extended until 31st December 2026 and discontinued thereafter.

Owners registering electric cars and taxis in 2026 will receive a rebate of 45% of the Additional Registration Fee (ARF), capped at SGD 7,500 (US$ 5,850), down from the previous cap of SGD 15,000.

With the revised EEAI and VES, buyers of electric vehicles will receive combined cost savings of up to SGD 30,000 and SGD 20,000 off the ARF for vehicles registered in 2026 and 2027, respectively.

The SGD nil ARF floor for electric cars and taxis will also be maintained until 31st December 2027.

The overall benefits will be gradually reduced as Singapore moves towards 100% cleaner-energy vehicles, in line with the national target of achieving net-zero emissions by 2050.