The Carbon Emissions-Based Vehicle Scheme (CEVS) which will be implemented in 2013, will be in a form of an offset against the vehicle’s Additional Registration Fee (ARF) where a maximum rebate of $20,000 will be given for those models which emit less than 100 g/km under the combined cycle.
But it seems like small and economical car will not be able to enjoy the incentive at its maximum due to the minimum Additional Registration Fee (ARF) payment that is $5,000.
Meaning, a buyer of an efficient but somewhat inexpensive car with CO2 emission of under 100 g/km that has a low Open Market Value (OMV) of below $25,000 will not be able to take full advantage of the $20,000 maximum rebate.
ARF is set at 100% of OMV, so a car with a CO2 emission of under 100 g/km with an OMV of about $21,000 will not be able to get the full 20,000 rebate. This means that the buyer still has to pay a minimum ARF of $5,000 instead of just $1,000.
LTA says that fuel-efficient cars and taxis are subject to a minimum ARF payable of $5,000 as models that have relatively low ARF payable need not to be further incentivised.
LTA added that that the minimum ARF payable of $5,000 ensures that cars will continue to enjoy a certain amount of Preferential Additional Registration Fee (Parf) benefit when they are deregistered early which is line with LTA’s existing policy objective of keeping car fleet that are young.
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Sources: LTA