To phase out internal combustion engine (ICE) vehicles within the next 20 years, Singapore will make electric vehicles (EVs) more attractive from next year (2021).
“Our vision is to phase out ICE and have vehicles run on cleaner energy by 2040,” Finance Minister Heng Swee Keat said, adding that this goal is for “both public health and climate change reasons”.
Singapore has said that it sees climate change as an existential threat, and Mr Heng announced several measures to make EVs a viable option on 18 February.
First, the Vehicular Emissions Scheme (VES), which metes out tax rebates and surcharges based on a vehicle’s emission levels, will be extended to light commercial vehicles.
Second, an early adoption incentive scheme will be rolled out for EV buyers from 2021 to 2023. It will offer a 45% rebate on the car’s Additional Registration Fee (ARF, the main car tax), capped at $20,000 per vehicle.
Third, the road tax for EVs and some hybrids will be revised to be less punitive.
Fourth, Singapore will expand the EV charging infrastructure significantly from 1,600 points now to 28,000 by 2030.
However, the Government will also introduce a six-monthly lump sum tax for EVs from 2021, starting at $100, then $200 in 2022, and $350 from 2023 onwards.
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Source: The Straits Times, 19 February 2020