We thank Mr Peter Loon Seng Chee for his letter (No real rebate for owners of lower-emission cars, Nov 4).
In determining a new vehicle's price, the vehicle industry takes into account multiple factors which include the vehicle's open market value, certificate of entitlement (COE) category, COE prices and trend, as well as any incentives and disincentives offered or charged by the Government.
Hence the vehicle price may not change by the exact same amount as the rebate or surcharge offered or imposed under the Vehicular Emissions Scheme (VES).
We also recognise that as the VES incentives are effected through the Additional Registration Fee, that the Preferential Additional Registration Fee rebate would correspondingly be affected.
Overall, the policy has been effective in encouraging the uptake of cleaner car models, with a 60 per cent increase in the number of new cars registered in VES Band A1 and A2, and a 14 per cent decrease in those in Bands C1 and C2 in the period from July last year to June this year, in COE Categories A and B.
As the VES has been extended by one year to Dec 31 next year, we encourage motor dealers to continue to introduce cleaner car models to the market.
Tan Li Yen
Director, Environmental Protection Policy & International Relations
National Environment Agency