Incentives to boost adoption of electric heavy vehicles, fast charger installation

Road tax for such vehicles and buses will rise to account for loss of fuel excise duties

- Kok Yufeng

Owners of heavy goods vehicles and buses will be given incentives to switch to electric models as part of the Government's latest push to reduce planet-warming carbon emissions generated by the transport sector.

The authorities will provide partial funding for the installation of related charging infrastructure via a new grant, Prime Minister Lawrence Wong announced in his Budget speech on Feb 18.

The Government will also continue studying how Singapore's rail network can be expanded, PM Wong said, without elaborating.

"Alongside electrification, increasing the use of mass public transport is central to reducing emissions," he added.

The electric vehicle incentive schemes announced on Feb 18 are aimed at speeding up the adoption of clean heavy vehicles, which has been slower than for other electric vehicle types, said PM Wong, who is also Finance Minister.

To partly make up for the loss of fuel excise duties, which contribute around $1 billion a year to the public purse, the road tax payable for electric heavy vehicles and electric buses will be raised in tandem.

A flat tax component that is already in place for electric cars and light goods vehicles will be introduced for electric heavy goods vehicles and buses, said PM Wong.

To be phased in over three years from January 2026 and rolled out in full from January 2028, this "additional flat component", or AFC, will be set at $250 per year for electric heavy goods vehicles, $190 a year for electric mini-buses, and $550 per year for large electric buses.