Singapore backs COE rebate and surcharge scheme — Channel NewsAsia

In Singapore, most participants in public consultations supported the proposed system of rebates and surcharges for the Certificate of Entitlement (COE). The largest number of respondents preferred a model with five price bands, Channel NewsAsia reports.

Transport Minister Jeffrey Siow said in parliament on November 3 that Singapore’s Land Transport Authority is still reviewing the proposals submitted after the consultations concluded. No final changes to the system have been approved yet.

Rebates and surcharges

The authorities propose merging the current COE Categories A and B into a single category for passenger cars and introducing a system of rebates and surcharges. Models with a lower open market value would receive a rebate on the COE price, while more expensive cars would incur a surcharge.

The authority is considering options with three or five price bands. In both models, the largest rebate and the largest surcharge would amount to S$15,000, while the difference between them could reach S$30,000. The aim of the proposal is to maintain a consistent price difference in COE premiums between mass-market and more expensive cars, while the premiums themselves would continue to be determined by the market.

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Electric vehicles and support for families

According to Siow, the spread of electric vehicles has weakened the distinction between the current Categories A and B. Manufacturers and workshops can alter the output power of electric vehicles through software, meaning the same model can qualify for different COE categories. As a result, Category A premiums exceeded Category B premiums several times this year.

A separate rebate and surcharge system for electric vehicles is not planned, as this would make the mechanism excessively complicated. Instead, the government intends to continue supporting the adoption of electric vehicles through the Vehicular Emissions Scheme.

The government is also studying the possibility of a transport grant for large families. The Land Transport Authority expects to complete its review of the system by the end of the year and publish its findings and recommendations in the first half of 2027.