Number of Consumers Enjoying Tax Rebates under Commercial Vehicle Emissions Scheme

Dr Lim Wee Kiak asked the Minister for Sustainability and the Environment (a) how many consumers enjoy tax rebates under the Commercial Vehicle Emissions Scheme (CVES) since its implementation; and (b) whether the Ministry will consider delaying the stepdown in incentives announced on 15 November 2022 on adjustments to the CVES.

The Senior Parliamentary Secretary to the Minister for Sustainability and the Environment (Mr Baey Yam Keng) (for the Minister for Sustainability and the Environment): Under the Commercial Vehicle Emissions Scheme or CVES, purchasers of cleaner light commercial vehicles receive a cash incentive to defray the purchase cost. More than 6,700 CVES incentives have been awarded since the CVES was implemented on 1 April 2021.

The CVES was due to end on 31 March 2023. Following our review and consultation with industry, we have announced the extension of the CVES on 15 November 2022 with adjustments to the scheme. We have taken industry feedback into consideration and extended the CVES with a smaller stepdown in incentives than initially planned. The revised incentives and surcharge quanta ensure that the total cost of owning and using a cleaner vehicle over its lifespan will continue to be lower than a more pollutive one, maintaining the momentum towards cleaner vehicles.

Thank you, Mr Speaker. I would like to ask one supplementary question regarding whether has the scheme achieved the initial target? Will the Ministry consider further extension of this scheme? The feedback from the commercial users is that it has been extremely helpful for them for the conversion. If this scheme is removed, then their cost will go up.

Of course, we hope that more vehicle owners will switch to cleaner vehicles. That is the purpose of the scheme. We are happy to see that 6,700 vehicle owners have benefited from that and we hope that the momentum will carry on. That is why we are extending the scheme even though it was due to expire in a few months' time.

We have considered the option of extending the scheme without changing any of the scheme parameters, but there was a need to adjust the pollutant thresholds, to account for the new and more stringent emissions test cycle – which is called the Worldwide Harmonised Light Duty Test Procedure, which will be solely adopted from 1 April 2023. This is to ensure that there is sufficient variety of price competitive vehicle models across all the three bands, while continuing to spur the adoption of cleaner energy vehicles. So, we would like to urge all light commercial vehicles owners to make good use of this extension and help us towards achieving a cleaner target for Singapore.