The Vehicle Emissions Scheme (VES) can save you up to $25,000 on an EV purchase in Singapore. Here's exactly how it works, which cars qualify, and how to claim it without missing a dollar.
Buying an EV in Singapore is one of the few times the government actively rewards you. The Vehicle Emissions Scheme (VES) can knock up to $25,000 off the cost of a qualifying electric vehicle — but most buyers leave money on the table simply because they don't fully understand how it works.
What is the VES Rebate?
The VES is a tiered emissions-based scheme administered by the Land Transport Authority (LTA) and the National Environment Agency (NEA). Cars are banded from A1 (cleanest) to C (most polluting) based on their regulated pollutant levels: carbon dioxide (CO₂), hydrocarbons (HC), carbon monoxide (CO), nitrogen oxides (NOx), and particulate matter (PM). Battery electric vehicles (BEVs) automatically fall in Band A1 and receive the maximum rebate.
| Band A1 | $25,000 rebate |
| Band A2 | $15,000 rebate |
| Band B | No rebate, no surcharge |
| Band C | $10,000–$25,000 surcharge |
Which EVs Currently Qualify for the Maximum Rebate?
All battery-electric vehicles sold through authorised dealers in Singapore currently qualify for the Band A1 $25,000 rebate. This includes popular models like the BYD Atto 3, Tesla Model 3, Hyundai Ioniq 5, Kia EV6, Volvo EX30, MG4, and Nissan Leaf. Luxury EVs priced above $280,000 OTR are not eligible — this excludes models like the Mercedes EQS, BMW iX, and Porsche Taycan.
How is the Rebate Applied?
The VES rebate is applied directly to the Additional Registration Fee (ARF) when you register the vehicle. It is not paid to you as cash — instead it reduces the total registration cost. Your authorised dealer handles the paperwork automatically as part of the vehicle registration process, so you don't need to submit a separate claim form. The rebate is reflected in the OTR (On-The-Road) price breakdown your dealer provides.
Is the $25,000 Rebate on Top of Other Incentives?
Yes. The VES rebate is separate from the EV Early Adoption Incentive (EEAI) that was active in earlier years, and also separate from any dealer promotions or financing subsidies. However, the EEAI scheme has already ended as of end-2023. What remains is purely the VES, which is an ongoing programme.
Pro tip: Always ask your authorised dealer to show you the full price breakdown including ARF before and after VES rebate, so you can verify the exact savings being applied to your vehicle.
What About PARF and Resale Value?
Because the VES rebate reduces your ARF, it also slightly reduces your PARF (Preferential Additional Registration Fee) rebate at the end of the car's life. However, for most buyers planning to deregister after 10 years, this impact is minimal — and the upfront savings far outweigh the small reduction in PARF value. Calculate your net benefit against your intended ownership period before deciding.
The Bottom Line
The VES rebate is one of the most straightforward government incentives in Singapore's automotive market. If you're buying a battery-electric vehicle priced under $280,000 OTR through an authorised dealer, you will receive the $25,000 rebate automatically — no extra steps required. It's one of the strongest reasons to go electric in Singapore right now.