EV Rebates: VES and EEAI Explained
Two schemes lower the cost of a cleaner car. The Revised Vehicular Emissions Scheme (VES) gives an ARF rebate of up to S$22,500 for the cleanest cars registered in 2026, or a surcharge for dirtier ones. The EV Early Adoption Incentive (EEAI) gives fully electric cars a further 45% off ARF, capped at S$7,500 for 2026 — but the EEAI ends on 31 December 2026.
Two Government schemes shape the upfront cost of a cleaner car in Singapore: the Vehicular Emissions Scheme (VES) and the EV Early Adoption Incentive (EEAI). Both work by reducing the Additional Registration Fee (ARF) — the big tax on a car’s Open Market Value (see OMV, ARF and PARF explained). There is one time-sensitive point: the EEAI ends on 31 December 2026.
VES — rebate or surcharge by emissions
The Revised VES applies to cars registered from 1 January 2026 to 31 December 2027. A car is placed in a band by its worst-performing pollutant (CO₂ plus four others), and that band sets either an ARF rebate (cleaner cars) or a surcharge (dirtier ones):
Negative = rebate off ARF; positive = surcharge. Source: LTA.
| Band | 2026 (cars) | 2027 (cars) |
|---|---|---|
| A (cleanest) | −S$22,500 rebate | −S$20,000 rebate |
| B | S$0 | S$0 |
| C1 | +S$7,500 surcharge | +S$15,000 surcharge |
| C2 | +S$22,500 surcharge | +S$30,000 surcharge |
| C3 (dirtiest) | +S$35,000 surcharge | +S$45,000 surcharge |
So the cleanest cars get up to S$22,500 off their ARF in 2026, while high-emission cars pay a surcharge on top. Electric and plug-in hybrid cars have their CO₂ rated using an emission factor of 0.4g CO₂/Wh (applicable through 31 December 2027).
EEAI — extra help for electric cars, ending soon
The EEAI gives fully electric cars a rebate of 45% of the ARF, on top of any VES rebate. The cap has been stepped down over the years and for registrations in 2026 it is S$7,500. Crucially, the scheme ceases after 31 December 2026 — from 2027, only VES rebates will offset the ARF.
The EEAI steps down and ends after 31 December 2026. Source: LTA.
| EEAI cap by registration date | Cap |
|---|---|
| 1 Jan 2021 – 31 Dec 2023 | S$20,000 |
| 1 Jan 2024 – 31 Dec 2025 | S$15,000 |
| 1 Jan 2026 – 31 Dec 2026 | S$7,500 |
How the rebates apply
Both rebates are used to offset the ARF, reducing the car’s registration tax rather than being paid out as cash. For most cars there is a minimum ARF of S$5,000, but fully electric cars have no minimum ARF through 31 December 2027, so the rebates can reduce the ARF further for EVs than for petrol cars.
If you are weighing an EV, the rebates are only half the story — running costs matter too. See petrol vs electric car: real cost.
Related
General information on vehicle rebate schemes, not financial advice. Bands, caps and dates change; confirm current figures on the LTA OneMotoring website before buying.
Sources
- Vehicle Emission Schemes (Revised VES bands 2026–2027) — Land Transport Authority (OneMotoring) (as of October 2026)
- Vehicle Tax Structure (EEAI caps and minimum ARF) — Land Transport Authority (OneMotoring) (as of October 2026)