COE perks to entice owners to replace old diesel vehicles
SINGAPORE - Owners of old diesel vehicles are being encouraged to replace them with new and cleaner models without the need to bid for a COE.
The National Environment Agency (NEA) and Land Transport Authority (LTA) on Wednesday announced the specifics of the new Early Turnover Scheme, under which owners of Category C diesel vehicles registered before Jan 1, 2001, are allowed to deregister them, and register a replacement commercial vehicle by paying a discounted Prevailing Quota Premium (PQP).
By dropping the requirement to bid for a Cat C certificate of entitlement, NEA and LTA hope to incentivise the early replacement of these predominantly pre-Euro and Euro I diesel vehicles with models that comply with at least Euro V diesel standards or their equivalent.
About 38,000 Cat C vehicles qualify for the scheme.
The move is one of NEA's abatement measures to reduce the levels of particulate matter and achieve Singapore's 2020 air quality targets.
If the owner of an old commercial vehicle decides to take up the offer, he will be allowed to transfer his eligible existing vehicle's unused period of its COE to the replacement vehicle.
He will also get a bonus COE period for his replacement vehicle equal to a proportion of the existing vehicle's remaining 20-year lifespan at the point of deregistration. The transferred COE and bonus COE periods will be capped at 10 years in total.
The bonus proportion of the remaining 20-year lifespan differs depending on the vehicle's maximum laden weight (MLW).
For an existing vehicle with an MLW of 3,500 kg or less, the bonus COE period is 10 per cent of its remaining 20-year lifespan at deregistration. For one with an MLW of more than 3,500 kg, it is 30 per cent of its remaining 20-year lifespan at deregistration.
The bonus proportion is set higher for heavier vehicles to further encourage their owners to replace them, as they generally emit more particulate matter and are more expensive to replace than lighter ones.