Joint LTA - NEA News Release

The Land Transport Authority (LTA) and the National Environment Agency (NEA) are pleased to announce that the green vehicle rebates (GVR) will be extended for another two years, until 31 December 2007. From 1 January 2006, owners of green vehicles will enjoy the following rebates:

1. Rebate equivalent to 40% of the car's Open Market Value (OMV) that can be used to offset the Additional Registration Fee (ARF) payable at registration;

1. Rebate equivalent to 40% of the vehicle's OMV for passenger cars and 5% of the vehicle's OMV for buses that can be used to offset the ARF payable at registration. For CNG taxis, the rebate will be equivalent to 80% of the vehicle's OMV from 1 January 2006 to 30 September 2006, as was announced in March 2004, to facilitate the introduction of Euro IV standards for diesel vehicles. Thereafter, from 1 October 2006 onwards, the rebate for CNG taxis will be equivalent to 40% of the vehicle's OMV.

Owners of green cars and taxis would therefore enjoy rebates of 40% of the car's OMV, up from the present 20% of OMV. With the higher rebates on the taxes payable at registration, the prevailing road tax rebates for all green vehicles will no longer apply

Green vehicles are less pollutive than conventional petrol and diesel driven vehicles. To encourage the use of green vehicles, GVRs were first introduced in January 2001 for the registration and use of electric and hybrid cars, and were extended to CNG vehicles in October 2001. The GVRs aim to narrow the cost differential between green vehicles and conventional vehicles. The GVR was extended again in January 2004.

The Government will continue to explore ways to promote environmentally friendly vehicles.