Considerations for Extensions of Electric Vehicle Early Adoption Incentive and Additional Registration Fee Floor from 1 January 2024

Mr Chua Kheng Wee Louis asked the Minister for Transport (a) what are the considerations contemplated on the extensions of the (i) Electric Vehicle Early Adoption Incentive and (ii) Additional Registration Fee floor that will be effected from 1 January 2024; and (b) what are the considerations taken into account for the adjustments of the Vehicular Emissions scheme rebates that will take effect from 1 January 2024.

Our target is for all vehicles to run on cleaner energy by 2040. The Electric Vehicle Early Adoption Incentive (EEAI) and the Vehicular Emissions Scheme (VES) contribute towards this goal by reducing the upfront costs of buying cleaner energy cars.

The extension of EEAI and VES was to continue with the subsidies for cleaner energy cars to reduce the difference in upfront and total lifecycle cost with internal combustion engine cars. More rebates are given to cars with lower emissions.

The extension of the Additional Registration Fee (ARF) floor of $0 for electric cars allows electric cars to maximise the combined EEAI and VES rebates off the ARF, up to $40,000. As a result, many mass-market models will not need to pay ARF.