COE review: Rebate-surcharge scheme with five bands backed by most respondents
Government not considering different rebate-fee levels for EVs, while taxis are still under review
In a recent COE review, most respondents supported a rebate-surcharge scheme for the Certificate of Entitlement (COE) system, according to the Land Transport Authority's (LTA) public consultation. Minister for Transport Jeffrey Siow proposed a five-band system to reduce the "cliff effects" of car ownership costs. Cars would be classified based on their open market value, with mass-market vehicles eligible for up to S$15,000 in rebates and luxury vehicles facing a surcharge of up to S$15,000.
The aim was to differentiate premiums for mainstream and higher-end cars. However, the treatment of taxis and private-hire cars (PHCs) remained under review. Siow stated that PHCs would not have a separate COE category, as creating one would restrict the supply of COEs and raise rentals for PHC drivers, ultimately increasing fares for commuters.
The rebate-surcharge scheme was not intended to be applied to electric vehicles, as the government sought to simplify the system by continuing its support through the Vehicular Emissions Scheme, which provides incentives for cleaner cars and penalties for more polluting ones.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
