In an effort to ensure a clean environment in Singapore, NEA works together with the public and businesses to promote environmentally-friendly practices and operations. The Green Vehicle Rebate (GVR) programme is one such initiative.

The GVR is an inter-agency effort by various Government agencies (Ministry of Finance, Ministry of the Environment and Water Resources, Ministry of Transport, Land Transport Authority and National Environment Agency) that offers incentives to promote the replacement of older, more polluting vehicles with newer, more environmentally-friendly ones. Such green vehicles are less pollutive than conventional petrol and diesel-driven vehicles.

Individuals

GVR aims to drive the adoption of green vehicles by narrowing the cost differential between a green vehicle and conventional equivalent models. This is done by offering a rebate on a vehicle's additional registration fee (ARF). The rebate is calculated as:

• 40% of the open market value (OMV) at registration, for hybrid, electric and CNG passenger vehicles.
• 10% of the vehicle's OMV for electric motorcycles

Businesses

The GVR programme extends a rebate to businesses on a vehicle's additional registration fee (ARF). The rebate is calculated as:

• 5% of open market value (OMV) at registration, for hybrid, electric and CNG buses and commercial vehicles.

Other Tax Incentives for Green Vehicles

Other tax incentives enjoyed by the owners of green vehicles are as follows:

• For CNG cars: Special tax exemption until 31 Dec 2011. With effect from 1 January 2012, CNG cars will no longer be subjected to special tax and a CNG duty will be phased in at $0.20 per kg.
• For hybrid, electric and CNG buses and commercial vehicles: Road tax is pegged to that for petrol equivalents, which is 20% lower than their diesel equivalents.

Note: Special tax is not applicable to Buses and Commercial Vehicles.

Visit the LTA's website for further information on vehicle tax structure.