Budget 2021: S$30m for EV initiatives; electric cars' road taxes to be adjusted

SINGAPORE is making a big push for cleaner transport, with several schemes relating to electric vehicles (EVs) unveiled in this year's Budget.

"While we are going car-lite, we can further reduce emissions by switching to cleaner-energy vehicles," Deputy Prime Minister Heng Swee Keat said in Parliament on Tuesday.

He added that EVs are the most promising clean-energy vehicle technology today.

The government will set aside S$30 million over the next five years for EV-related initiatives, such as measures to improve charging provision at private premises.

This is meant to catalyse the partnership between the public and private sectors, and comes as Singapore is accelerating the development of its charging infrastructure, said Mr Heng, who is also Finance Minister.

"We aim to deploy 60,000 charging points at public car parks and private premises by 2030 - more ambitious than our previous target of 28,000," he added.

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The government will also narrow the cost differential between electric cars and internal combustion engine (ICE) cars, to further encourage the early adoption of EVs.

To achieve this, the Additional Registration Fee floor will be lowered to zero for electric cars, from January 2022 to December 2023. This will enable mass-market buyers to maximise the rebates from the EV Early Adoption Initiative.

The road tax treatment for electric cars will also be revised, Mr Heng said. This will be done by adjusting the road tax bands so that a mass-market electric car will have a road tax comparable to an ICE equivalent.

The Minister for Transport will provide details at the Committee of Supply.