SINGAPORE – Motor industry players said the introduction of the new Carbon Emissions-based Scheme announced yesterday in the Budget statement, is a positive move.
They said some green car buyers could also potentially enjoy a higher rebate compared to the existing Green Vehicle Rebate Scheme.
The take-up rate of green vehicles in Singapore remains modest, despite the availability of a Green Vehicle Rebate Scheme since 2001.
Those with electric or hybrid cars stand to enjoy a 40 per cent rebate, which can offset their vehicles’ Additional Registration Fee (ARF).
But authorities realised there’s a drawback.
Compared to hybrid vehicles, some petrol cars with smaller engine capacities emit less carbon.
So the new Carbon Emissions-based Scheme will kick in.
Those with cars that emit less carbon will enjoy rebates of up to S$20,000 on their ARF.
Meanwhile, those with cars that are more pollutive will be slapped with a registration surcharge of up to S$20,000.
Analysts said this is a fairer and more effective way to drive home the green message.
National University of Singapore Department of Civil Engineering Associate Professor Lee Der-Horng said: “I think our car dealers, they may bring in more diesel engine vehicles and more vehicles other than the conventional so-called green vehicle that we have in Singapore, into the vehicle market.
“So overall speaking, in the end, the environment will receive the benefit.
“More and more people are conscious about the environment, and this is actually not only CO2, so this is where it is worth commenting on the new GVR scheme which focuses on carbon emissions.
“The owners of big luxury cars will be affected, but I don’t think it will influence sales. This is because luxury car owners are wealthier.”
The new scheme will kick in for all passenger cars when the Green Vehicle Rebate scheme expires at the end of this year. CHANNEL NEWSASIA