Singapore to invest SGD 30 mil for EVs, road tax structure to be revised

In Singapore’s Budget 2021 today, Singapore Finance Minister and Deputy Prime Minister, Heng Swee Keat announced that Singapore will introduce more incentives to encourage the adoption of electric vehicles.

Channel News Asia reports that Singapore will set aside 30 million SGD over the next five years for electric vehicle related initiatives.

Some of the initiatives include lowering the Additional Registration Fee (ARF) tax to zero for electric cars from January 2022 to December 2023.

The move aims to encourage adoption of mass-marker electric cars.

Singapore’s EV Early Adoption Incentives (EEAI) provides a rebate of up to 45% on the ARF (capped at 20,000 SGD).

With EEAI, private EV owners can save up to 45,000 SGD while taxi EV owners can save up to 57,500 SGD.

The Singapore government will also revise the road tax structure to bring the cost of ownership of EVs closer to ICE vehicles. Details on the road tax structure revision will be provided at the Committee of Supply debates in Parliament.

Under the Vehicular Emissions Scheme (VES) announced late last year, rebates will be increased for clean energy vehicles while pollutive vehicles are imposed a surcharge.

Besides ownership incentives, Singapore is also pushing for better EV charging infrastructure. The target is to have 60,000 charging points by 2030.

Also assisting the push for EVs in Singapore are banks like OCBC and DBS. OCBC has partnered with Charge+ (a Singaporean EV solution provider) to boost the infrastructure.

DBS on the other hand will provide low interest financing (1.68%) called the Green Car Loan for EV owners starting March 2021.

This push for EVs in coincides very well with Tesla’s return to Singapore. EV adoption in the ASEAN region has been most aggressive in Indonesia and Thailand. Looks like it’s time for Singapore to get fully charged.