Updated VES Banding Rebates and Surcharges For 2021

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Motorist M Review Byd E6 Together In Electric Dreams Sep 2020 01

There will be adjustments done to the Vehicular Emission System (VES) Banding rates with effect from 1st January 2021. Less-polluting vehicles are now cheaper to own, with the inverse for more polluting ones.

In its continued effort to reduce vehicular emissions and improve air quality, the National Environment Agency (NEA) and Land Transport Authority (LTA) are promoting the adoption of greener vehicles and discouraging purchases of internal combustion engine vehicles.

With the updated VES Banding rates for 2021, rebates for vehicles falling under Bands A1 and A2 will be increased by S$5,000, while the surcharges for vehicles in Bands C1 and C2 will be increased by S$5,000.

If you are in the market for a new car and want to capitalise on the rebates, the BYD e6, that falls under Band A1, will now enjoy a $25,000 rebate instead of the previous $20,000. Another environmentally friendly option is the new Honda Freed Hybrid in Band A2 to get that sweet $15,000 rebate up from $10,000.

Motorist M Review 2020 Honda Freed Hybrid Better Than The Sienta Oct 2020 01

As an added bonus, if you decide to hop on to the electric vehicle bandwagon next year, you'll also be eligible for a combined saving of up to $45,000 thanks to the Electric Vehicle Early Adoption Incentive (EEAI) scheme, also rolling out on 1st January 2021.

To further encourage the switch to electric or hybrid vehicles, LTA will be phasing out pollutive cars by 2040. They will also be installing 28,000 charging stations across Singapore by 2030 to ensure the infrastructure needed for a growing electric car population.

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On the flipside, surcharges for cars under the VES Bands C1 and C2 will now be $20,000 and $25,000, up from $15,000 and $20,000 respectively.

Don't panic just yet as the updated surcharges for Band C1 and C2 will only be taking effect from 1st July 2021, so you still have some time before the extra costs kick in on your new car purchase.

If you're now convinced and want to help save the planet by switching to a greener vehicle, get a car valuation on your current gas-guzzler today!


Current Pricing for Cars

New Pricing for Cars








No Rebate/Surcharges

No Rebate/Surcharges







*Bands A1 and A2 will be taking effect on 1st January 2021
*Bands C1 and C2 will be taking effect on 1st July 2021

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