Considerations in Decision on Quantum of Vehicular Emissions Scheme Rebates for 2025

Mr Chua Kheng Wee Louis asked the Minister for Sustainability and the Environment (a) what are the Government’s considerations in determining the quantum of Vehicular Emissions Scheme (VES) Rebates in 2025; and (b) whether the Government will consider enhancing the VES rebates for vehicles in the A1 band and reversing the reduction in VES Rebates for vehicles in the A2 band to encourage the adoption of cleaner energy vehicles.

The Vehicular Emissions Scheme (VES) encourages the adoption of cleaner energy vehicles to reduce emissions and improve air quality. VES provides a rebate to vehicles with lower emissions and imposes a surcharge on vehicles with higher emissions, such that the upfront costs of cleaner energy vehicles are price-competitive with conventional petrol or diesel equivalents. Vehicles with zero tailpipe emissions receive the highest rebate. The VES rebates for 2025 will continue to encourage the adoption of cleaner energy vehicles based on these considerations.

My Ministry has been reviewing the VES rebates regularly together with the Ministry of Transport.