In its efforts to ensure a clean environment in Singapore, NEA works together with the public and businesses to promote environmentally friendly practices and initiatives. The Green Vehicle Rebate (GVR) programme is one of these initiatives. 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) and offers incentives to promote green vehicles which are more fuel-efficient and emit less air pollutants than their conventional petrol or diesel equivalents.

The scheme was first introduced in January 2001 for the registration and use of electric and hybrid cars to encourage the use of green vehicles. It was later extended to Compressed Natural Gas (CNG) vehicles in October 2001.

The scheme aims to narrow the cost differential between green vehicles and conventional vehicles and it has been extended four times since its introduction, from:

• January 2004 till December 2005;
• January 2006 till December 2007;
• January 2008 till December 2009; and
• January 2010 till December 2011

Quantum of rebates

Under the current GVR scheme, owners of green vehicles can enjoy the following rebates:

Electric, Hybrid and CNG Vehicles

Rebate equivalent to

• 40% of the vehicle's Open Market Value (OMV) for electric, hybrid and CNG passenger cars,
• 5% of the vehicle’s OMV for electric, hybrid and CNG buses and commercial vehicles, and
• 10% of the vehicle’s OMV for electric motorcycles

The rebate can be used to offset the Additional Registration Fee (ARF) payable at registration.

Other Tax Incentives for Green Vehicles

Other tax incentives enjoyed by green vehicles are:

• 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.

Further information on GVR can be found in Funds and Incentives.