(Photo Credit: Pixabay)
The existing Vehicular Emissions Scheme (VES) has been extended from 31 December 2019 to 31 December 2020. This was done in an effort to encourage drivers to purchase cleaner cars.
The scheme is meant to encourage new car buyers to purchase more environmentally-friendly vehicles by granting rebates or imposing surcharges.
Rebates and surcharges are based on how clean the car’s emissions are.
What Exactly is VES?
The VES was a scheme introduced after the Carbon Emission-Based Vehicle Scheme (CEVS), to cover four extra pollutants, besides carbon dioxide. These pollutants can cause harm to the environment, as well as the residents of Singapore. It was first introduced on 1st January 2018.
VES applies to cars, taxis and imported used cars – aka those that fall under two of the Certificate of Entitlement (COE) categories, namely:
- Category A – Cars up to 1600CC and 97KW
- Category B – Cars above 1600CC or 97KW
It’s aim is to reduce carbon emissions, improve ambient air quality and thereby improving public health.
VES covers five pollutants in total.
These pollutants are:
- Carbon Dioxide (CO2)
- Hydrocarbons (HC)
- Carbon Monoxide (CO)
- Nitrogen Oxides (NOx)
- Particulate Matter (PM)
Based on your vehicle’s emissions, the pollutant with the worst performance, aka the highest level of emissions, will determine your vehicle’s “band”.
(Photo Credit: One Motoring)
The VES consists of five bands – A1, A2, B, C1 and C2.
Depending on how many pollutant(s) your vehicle emits, the worst performing one will determine which band your vehicle falls under.
Bands A1 and A2 are the ones that give you rebates, although it is subject to a minimum payment of S$5,000 for the Additional Registration Fee (ARF).
Band B gives you neither rebates nor surcharges.
Bands C1 and C2 are for the vehicles with the worst emission levels, imposing a surcharge of either S$10,000 or S$20,000.
Refer to the table above to see how each band is calculated.
As mentioned above, the VES is being extended by one year to 31st December 2020.
According to the Land Transport Authority (LTA), the scheme has been doing well and has achieved significant results.
Between July 2018 and June 2019, which is a span of one year, there is a 60 percent increase in drivers purchasing cars that fall under VES Bands A1 and A2 – the ones that qualify for rebates.
Also, there is a drop of about 14 percent for new cars that fall under Bands C1 and C2 – the ones that are subject to surcharges.
During this extension, motor dealers are strongly encouraged to introduce cleaner, more environmentally-friendly cars into the market.
The scheme will be reviewed regularly as well, with LTA “taking into consideration its impact on motorists’ purchasing decisions and advances in vehicle technology”.
The scheme’s latest revision, from 1st July 2018 to 31st December 2019, will not face any changes during this extension.
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