The Vehicular Emissions Scheme (VES) has been used since Jan 1, 2018. The scheme, which replaced the Carbon Emissions-based Vehicle Scheme (CEVS), is part of Singapore?s ongoing efforts to improve overall air quality. The scheme will impact how you go about choosing a new car so here is a refresher on what VES is all about.
WHAT DOES VES TAKE INTO ACCOUNT?
The VES measures carbon dioxide and four other exhaust pollutants. These are carbon monoxide, hydrocarbons, nitrogen oxides and particulate matter.
IS THE VES NECESSARY?
Many cars, especially those that run on diesel, have exhaust emissions which have low levels of carbon dioxide. However, these cars produce a lot more of the other noxious pollutants. The aims of the VES are to strike a balance between keeping carbon dioxide emissions in check as they contribute to global warming and protecting our health from the other pollutants.
HOW WILL THE VES AFFECT MY CAR?
The amount of rebate or surcharge is determined by the pollutant which performs the worst of the five. There are two primary bands ? rebate of either $10,000 or $20,000, and surcharge of either $10,000 or $20,000.
HOW HAVE CAR PRICES BEEN SINCE THE VES WAS INTRODUCED?
Prices did rise slightly after the VES was introduced because many of the cars incurred surcharges when they enjoyed rebates previously. Also, car dealers couldn?t react promptly enough to bring in models which had cleaner exhaust emissions. However, things have settled down significantly since then and dealers are selling ?cleaner? cars including electric cars which qualify for the maximum $20,000 rebate.
HAS ANYONE BENEFITTED FROM THE VES?
Interestingly, buyers of exotic high-performance cars. These cars would have attracted a $30,000 surcharge under the CEVS but with the VES, the maximum penalty of $20,000 is $10,000 less.
HOW CAN YOU BUY A NEW CAR WISELY?
Every new car will display a VES label. This label is affixed onto the front windscreen and shows the car?s fuel consumption figure and VES banding. You can also use the Land Transport Authority?s Fuel Cost Calculator to get an idea of the car?s banding
(To learn more the Land Transport?s Authority?s tax structure for cars, click here.)