Are electric vehicles (EVs) truly paying less road tax in Singapore? As the city accelerates its transition towards sustainable transport, this question is top of mind for many individuals and businesses. Understanding how road tax applies to EVs is critical, especially if you’re considering EV leasing through EVFY. With the right knowledge, you can save significantly, take advantage of government incentives, and make a smooth switch to electric mobility.
TL;DR / Key Takeaways
EV road tax in Singapore is calculated based on electric power output, not engine size.
Recent government adjustments have lowered road tax for many EV models, though some still pay rates similar to petrol vehicles.
Government rebates like the EEAI and VES significantly lower the cost of owning an electric vehicle.
EV leasing with EVFY provides predictable costs, maintenance support, and access to a diverse fleet of electric vehicles.
Singapore’s expanding EV infrastructure and upcoming regulations make EV leasing a practical, future-proof choice.
How Is Road Tax Calculated for EVs in Singapore?
Singapore’s Land Transport Authority (LTA) applies a distinct approach to calculating road tax for EVs. Unlike petrol or diesel vehicles, which are taxed based on engine capacity, EVs are taxed according to their maximum electric power output, measured in kilowatts (kW). This reflects the fundamental difference in propulsion technology but results in a unique tax structure.
What This Means in Practice
EVs are categorized by power bands, with road tax calculated as a base fee plus an additional charge for power exceeding a set threshold.
Electric taxis pay an Additional Flat Component (AFC) to compensate for lost fuel excise duties.
Recent government adjustments have reduced road tax for many EVs to better align their costs with comparable petrol vehicles.
Despite recent changes, some electric vehicles still pay road tax amounts similar to petrol cars. While certain EV models benefit from reduced road tax, smaller or lower-powered electric vehicles may still face higher charges compared to similar petrol models.
Why This Matters
Road tax is just one factor in total cost of ownership. While some EVs pay similar road tax, the overall financial picture changes when you factor in government rebates, lower fuel costs, and reduced maintenance expenses.
What Government Incentives Make EV Ownership More Affordable?
Singapore’s government has introduced a range of incentives to make electric vehicle (EV) ownership more affordable, focusing on reducing the upfront costs that often deter buyers. These measures are designed to encourage EV adoption and support the country’s shift toward cleaner transportation
Key Incentives Available
The Early Adoption Incentive (EEAI) offers a substantial rebate on the Additional Registration Fee (ARF) for newly registered fully electric vehicles, making the initial purchase much more accessible for buyers
The Vehicular Emissions Scheme (VES) provides significant rebates for low-emission vehicles, with most electric vehicles qualifying for the highest level of support
The minimum ARF floor has been waived for electric vehicles, further lowering registration costs and removing a key financial barrier
The Combined Impact
Together, these incentives can greatly reduce the upfront cost of owning an EV, resulting in substantial savings compared to traditional vehicles. This financial support often outweighs any differences in ongoing costs, making EV ownership much more attractive for consumers in Singapore
Why EV Leasing with EVFY Is a Smart Choice
Purchasing an EV outright can require a substantial upfront investment. For many businesses and individuals, EV leasing through EVFY offers a more flexible and cost-effective alternative. Leasing allows you to enjoy the benefits of electric vehicles without the burden of large capital expenditure.
Advantages of Leasing with EVFY
Predictable Monthly Payments: Leasing provides stable, manageable monthly costs that simplify budgeting.
Maintenance and Support Included: EVFY covers routine servicing and maintenance, reducing downtime and unexpected expenses.
Wide Selection of EV Models: EVFY’s fleet includes a variety of vehicles designed for different business needs, from compact urban vans to heavy-duty trucks.
Charging Infrastructure Assistance: EVFY supports customers in setting up charging solutions, ensuring your fleet stays powered and ready.
Flexible Lease Terms: Scale your fleet up or down as your business demands change, without worrying about depreciation or resale.
Leasing through EVFY enables businesses to transition to electric vehicles with minimal risk and maximum convenience.
EVFY’s Electric Vehicle Fleet for Leasing
EVFY offers a diverse range of electric vehicles tailored to meet Singapore’s commercial sector demands, particularly in logistics and delivery services. Here’s a closer look at some of the key models available:
BYD T3
Max Payload: 780 kg
Cargo Volume: 3,800 litres
Range: Up to 300 km
Battery Capacity: 50.3 kWh
Charge Time: AC 7.6 hours / DC 1.3 hours
Best for zero-emission deliveries with spacious cargo capacity and fast charging.
DFSK EC35
Max Payload: 1,100 kg
Cargo Volume: 4,800 litres
Range: Up to 331 km
Battery Capacity: 38.7 kWh
Charge Time: AC 5.9 hours / DC 1.0 hour
Ideal for businesses requiring larger cargo space and heavier load capacity.
Golden Dragon XML5036
Max Payload: 1,730 kg
Cargo Volume: 6,500 litres
Range: Up to 250 km
Battery Capacity: 50.2 kWh
Charge Time: AC 7.6 hours / DC 1.3 hours
Designed for heavy-duty deliveries and large-scale logistics.
DFSK EC31
Max Payload: 1,280 kg
Cargo Volume: 3,500 litres
Range: Up to 280 km
Battery Capacity: 38.7 kWh
Charge Time: AC 5.9 hours / DC 1.0 hour
Compact and maneuverable for urban environments, with strong payload capacity.
SRM T3
Max Payload: 1,625 kg
Cargo Volume: 3,500 litres
Range: Up to 300 km
Battery Capacity: 53.6 kWh
Charge Time: AC 8.1 hours / DC 1.3 hours
Offers high payload and extended range for demanding transport needs.
This fleet variety ensures businesses can select vehicles that best fit their operational requirements while benefiting from zero-emission technology.
What Does the Future Hold for EV Road Tax and Infrastructure in Singapore?
Singapore’s Green Plan 2030 is a bold roadmap aiming to phase out petrol and diesel vehicles. By 2030, all new car registrations will be electric vehicles only. This policy shift means EV adoption will accelerate rapidly.
Upcoming Developments to Watch
Road Usage-Based Tax: The government is exploring a system that charges EV owners based on distance driven rather than power output, aiming for a fairer contribution to road maintenance.
Charging Infrastructure Expansion: Singapore plans to increase its EV charging points to 60,000 by 2030, improving accessibility and convenience for EV users.
Increased Incentives: As adoption grows, expect continued government support to encourage businesses and individuals to switch to EVs.
These developments will further support businesses leasing EVs, ensuring operational efficiency and compliance with evolving regulations.
Why EV Leasing with EVFY Is the Best Path Forward
Transitioning to electric vehicles requires more than just purchasing a car. It involves understanding tax implications, leveraging government incentives, managing fleet operations, and ensuring charging infrastructure is in place. EVFY offers professional EV leasing services designed to address all these factors.
Benefits of Choosing EVFY
Transparent, competitive pricing with no hidden fees.
Comprehensive maintenance and servicing included in lease packages.
Expert guidance on selecting the right EV models tailored to your business.
Assistance with charging infrastructure setup to ensure your fleet is always ready.
Flexible lease terms that adapt to your operational needs.
Leasing your EVs with EVFY means less hassle, more savings, and a greener footprint for your business.
Drive Your Business Forward with EV Leasing from EVFY
Singapore’s road tax system for EVs may seem complex at first glance, but the overall benefits of switching to electric are clear. With generous government rebates and EVFY’s tailored EV leasing solutions, you can reduce costs, simplify fleet management, and contribute meaningfully to a sustainable future.
EVFY is committed to supporting your transition with flexible leasing options, expert advice, and a diverse fleet designed to meet your business needs. Explore EVFY’s EV leasing services today and position your business at the forefront of Singapore’s green transport revolution.
For more information on EV leasing with EVFY, visit evfy.sg/leasing or contact EVFY directly at evfy.sg/contact-us.