Existing vehicular emissions scheme to be extended to 2025, tighter pollutant thresholds to be introduced in 2024

LTA has announced that the enhanced Vehicular Emissions Scheme (VES) will be extended for three years to Dec 31, 2025. However, tightened pollutant thresholds will come into effect from Jan 1, 2024.

The VES is an outcome-based feebate scheme to encourage the purchase of cleaner cars with lower emissions. Buyers of new cars can enjoy a rebate on their ARF if their cars fall under the 'A1' and 'A2' bands, or pay a surcharge if the vehicle they are purchasing is more polluting.

Whilst the rebate/surcharge structure remains unchanged, there are changes to the qualifying criteria, designed to make a clearer distinction between pure Internal Combustion Engine vehicles and cleaner electric cars.

These new pollutant thresholds will be introduced for the time period of Jan 1, 2024 to Dec 31, 2025, and will see only only cars with zero tailpipe emissions (e.g., EVs) being eligible for Band A1. However, not all electric cars are automatically classified as A1 cars; high power consumption EVs will be placed in Band A2, as will most hybrids and some pure ICE cars that are smaller and more efficient.

There will be no change to the VES rebate till Dec 31, 2023 and no change to the VES surcharge till Dec 31, 2025. The applicable VES rebates from Jan 1, 2024 will be announced in 2023.

Refer to the table below for the revised pollutant thresholds:

This article was first published in Motorist.