Oral Reply to Parliamentary Question on CVES by Mr Baey Yam Keng, Senior Parliamentary Secretary for Sustainability and the Environment

Oral Reply to Parliamentary Question on the Commercial Vehicle Emissions Scheme (CVES) by Mr Baey Yam Keng, Senior Parliamentary Secretary for Sustainability and the Environment

Dr Lim Wee Kiak: To ask the Minister for Sustainability and the Environment (a) how many consumers enjoy tax rebates under the Commercial Vehicle Emissions Scheme (CVES) since its implementation; and (b) whether the Ministry will consider delaying the stepdown in incentives announced on 15 November 2022 on adjustments to the CVES.

Answer:

1 Under the Commercial Vehicle Emissions Scheme (CVES), purchasers of cleaner light commercial vehicles receive a cash incentive to defray the purchase cost. More than 6,700 CVES incentives have been awarded since the CVES was implemented on 1 April 2021.

2 The CVES was due to end on 31 March 2023. Following our review and consultation with industry, we have announced the extension of the CVES on 15 November 2022 with adjustments to the scheme. We have taken industry feedback into consideration and extended the CVES with a smaller stepdown in incentives than initially planned.

3 The revised incentives and surcharge quanta ensure that the total cost of owning and using a cleaner vehicle over its lifespan will continue to be lower than a more pollutive one, maintaining the momentum towards cleaner vehicles.