PROMOTION OF CARS THAT CONSERVE FUEL

Mr Simon S C Tay asked the Minister for Communications and Information Technology whether he will consider tax and other special incentives to promote electric, hybrid and other cars with special features that conserve fuel and reduce harmful emissions.

Mr Yeo Cheow Tong: From the traffic management perspective, electric vehicles (EVs) and hybrid vehicles (HVs)1 occupy road space, contribute to traffic congestion and cause road damage no different from conventional vehicles (CVs). EVs and HVs should therefore be subject to similar ownership and usage management measures, ie., customs duties, registration fees, additional registration fees and road tax; as well as COE and ERP charges.

1 EVs are powered only by batteries which have to be recharged. HVs on the other hand have both a gasoline engine powered by petrol/diesel and an electric motor powered by batteries. In congested urban areas when the speed is low, the electric motor is used. The gasoline engine kicks in at higher speeds automatically to power the vehicle as well as recharge the batteries.

Nevertheless, we recognise that EVs, and to a lesser extent HVs, can be less pollutive than CVs. My Ministry will examine the issue carefully together with the Minstry of the Environment and Ministry of Finance to determine if tax incentives should be provided to promote their use in Singapore.