LTA proposes merging car COE categories A and B, with S$30,000 price cap

Singapore's Land Transport Authority has proposed merging car COE categories A and B into one, with a system of surcharges and rebates pegged to a car's open market value. The public consultation, which opened on 8 Oct, also seeks views on the future of the open Category E COE.

SINGAPORE: The Land Transport Authority (LTA) has proposed merging the Certificate of Entitlement (COE) categories for cars into a single category, and to introduce surcharges and rebates pegged to a car's open market value. Under the proposed fee-and-rebate system, the maximum price difference between a higher-end car and a mass-market car would be S$30,000 (US$23,000).

This means that buyers of higher-end electric vehicles (EVs) who currently pay Category A premiums, which have traditionally been lower than in Category B, could pay more as a result. A public consultation for the proposal opened at 5pm on Thursday (8 Oct) and will end at 11.59pm on Nov 2. LTA will share its findings and recommendations by the first half of 2027.

Categories A and B have traditionally segmented the market for cars into smaller, less powerful models and larger, more powerful ones, based on engine capacity and power.