From being described by Tesla’s Elon Musk as ‘not supportive’ of electric vehicles, Singapore has now declared its intentions phase out vehicles powered by internal combustion engines by 2040 in favour of low- and zero-emission vehicles.
To encourage mass adoption EVs and hybrids, the Singapore government will offer tax rebates of up to S$20,000 per vehicle under the EV Early Adoption Incentive programme beginning 1st January 2021 (and ending 1st January 2023). The scheme significantly lowers the high upfront cost of owning an EV, and it covers taxis as well.
Additionally, road tax for EVs and certain hybrid models will be reduced, although a flat annual fee will be imposed to compensate for the expected loss of fuel excise duty collection by the government, since electric cars won’t require fuelling.
The EV initiatives were announced by Singapore’s Deputy Prime Minister and Finance Minister Heng Swee Keat during his budget speech on 18th February, as part of the government’s goal to achieve a low-carbon, low-emission economy.
Of course, any effort to promote the adoption of EVs and plug-in hybrids wouldn’t be effective without a comprehensive charging network. To this end, the Singapore government will work with the private sector to expand the number of public charging points from 1,600 presently to 28,000 across the island.