LTA proposes one COE category for cars, with rebates and surcharges of up to S$15,000 based on a model's value
LTA proposed merging COE Categories A and B into one car category, with a rebate or surcharge of up to S$15,000 a car based on the model's median open market value from recent registrations. The maximum gap between cars would be S$30,000. LTA set out a three-band option and a five-band option with S$7,500 inner steps, and said the bands would be reviewed every year. It also asked for views on COE renewals and the Open Category. The consultation opened at 5pm on 8 October and closes at 11.59pm on 2 November. CNA, the Straits Times, the Business Times, Mothership and AsiaOne reported the proposal.
Category A premiums have at times exceeded Category B premiums, which defeats the point of separate categories. The change would tie what each car pays more closely to its value.
If you plan to buy a mass-market car, you may benefit from a rebate. Buyers of higher-end cars, including some electric cars in Category A today, may pay more.
Linking COE costs to car value is fairer and simpler than engine size or power.
Median values can vary across batches of the same model, and the system adds complexity to an already complex price.
The paper is open until 2 November. Watch whether LTA picks three or five bands and whether renewals are included. For prices overall, watch the COE quota.
DailyDrop Singapore edition No. 4 · Morning · THU., OCT. 8, 2026