Overview
- The Land Transport Authority has opened a public consultation proposing to merge Certificates of Entitlement Categories A and B into a single car category and to add model-level rebates or surcharges tied to each model’s median open market value.
- Under the proposal each model would be assigned to a band that gives a rebate of up to S$15,000 or a surcharge of up to S$15,000, creating a maximum S$30,000 gap between the lowest and highest adjustments and two banding options are being consulted on.
- LTA would publish band assignments each year, let car retailers appeal their model’s band, and is also asking whether the fee-and-rebate system should apply to COE renewals.
- Transport experts say the change could sharpen price differences between mass-market and luxury models and prompt dealers to change specs or packaging to hit favourable bands, but they warn the common COE premium would still be set by open bidding so average COE prices are not guaranteed to fall.
- The consultation runs until early November and LTA plans to report consultation findings and its recommendations in the first half of 2027, with officials still weighing practical issues such as enforcement, potential multiple-car surcharges, and support measures for households.