The proposed reform replaces Categories A and B with a unified car quota alongside an open market value mechanism to levy surcharges or grant rebates. Under this structure, entry-level models could see discounts while premium vehicles face penalties, generating a price spread reaching up to S$30,000. Regulators are also reviewing relief measures such as large-family transport grants and mandatory pricing transparency from vehicle dealers. The Land Transport Authority expects to finish its review later this year and release recommendations in early 2027.
Key points
Most public consultation respondents supported a five-band structure based on open market…: Most public consultation respondents supported a five-band structure based on open market value to avoid sudden cliff effects between pricing tiers.
A single unified car category would permanently replace the separate Category A and Categ…: A single unified car category would permanently replace the separate Category A and Category B quotas.
The government decided against creating a dedicated Certificate of Entitlement structure…: The government decided against creating a dedicated Certificate of Entitlement structure for electric vehicles to avoid overcomplicating the system.
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The government is also studying the option of a transport grant for large families, says Minister for Transport Jeffrey Siow.
SINGAPORE: A proposed scheme to introduce rebates and surcharges on Certificate Of Entitlement (COE) premiums has received majority support in a public consultation, with most respondents favouring a five-band system to distinguish between mass-market and luxury cars.
Transport Minister Jeffrey Siow said in parliament on Tuesday (Nov 3) that the Land Transport Authority (LTA) was still studying the submissions after the consultation closed on Monday and had not decided on the final changes.
"The majority of respondents expressed support for such a scheme. Most people preferred a 'feebate' with five-bands, to reduce cliff effects," said Mr Siow.
Several Members of Parliament (MPs) had asked about proposed changes to the Certificate of Entitlement (COE) system, including whether they would keep mass-market cars within reach, affect electric vehicle (EV) adoption and result in higher prices for cheaper cars.
In response, Mr Siow said that the proposed fee-and-rebate, or "feebate", system was intended to restore a "permanent price distinction in COE premiums between…
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