Car dealers say the proposed S$15,000 COE surcharge is too low to deter luxury buyers, as mass-market buyers wait
Some dealers say the proposed surcharge of up to S$15,000 would be too low to deter buyers of luxury cars (CNA). Some prospective buyers of mass-market cars are holding off while the Land Transport Authority consults the public on merging Certificate of Entitlement categories A and B into one category, with rebates and surcharges based on a model's open market value (CNA). Motorists and dealers are waiting to see how the changes affect prices, and dealers want more information as electric vehicle incentives are due to expire (ST).
The permit system sets the real price of owning a car in Singapore. A merged category would change who pays more and who pays less.
If you plan to buy a car, wait for the consultation outcome and check the electric-vehicle incentive deadline before you commit.
Linking the premium to a car's value would make the system fairer, as buyers of expensive cars would pay more.
If the surcharge is too small, wealthy buyers will not be deterred, while mass-market buyers face uncertainty and delay.
Watch the consultation feedback and the final surcharge numbers. The EV incentive expiry could pull some purchases forward.
DailyDrop Singapore edition No. 6 · Morning · SAT., OCT. 10, 2026