SINGAPORE: The government will revise the Preferential Additional Registration Fee (PARF) rebate scheme from February 2026, lowering rebate percentages and reducing the maximum rebate cap — a move that has already sparked debate among motorists online.
The changes, announced by Prime Minister Lawrence Wong during the Budget 2026 Statement and outlined by the Land Transport Authority (LTA), form part of broader efforts to manage Singapore’s vehicle population and transport policies. PARF rebates are designed to encourage motorists to deregister older vehicles earlier, helping to keep the national car fleet newer, safer, and less polluting.
However, news of the reduced rebates has drawn mixed reactions on social media, with some users questioning the timing and fairness of the revisions, particularly as vehicle ownership costs remain high.
Authorities said that as electric vehicles (EVs) account for a growing share of new registrations, the need to rely on higher PARF rebates as an incentive for early deregistration has diminished — prompting the latest adjustments to the scheme.
What will change?
Under the revised schedule, the rebate percentages will be significantly lowered across all vehicle age bands.
For cars deregistered within five years, owners currently receive 75% of the Additional Registration Fee (ARF) paid. This will drop to 30% under the new scheme.
For cars between nine and 10 years old, the rebate will fall from 50% to just 5% of the ARF paid. Vehicles deregistered after 10 years will continue to receive no PARF rebate. In addition, the PARF rebate cap will be reduced from S$60,000 to S$30,000.
Other rebate percentage changes for other age bands will be as follows:
When will it apply?
The LTA stated that the revised PARF rebate schedule and the new S$30,000 cap will apply to cars registered with Certificates of Entitlement (COEs) obtained from the second COE bidding exercise in February 2026 onwards.
Additionally, for vehicles that do not require a COE for registration (taxis and COE-exempt cars), the new schedule will apply to those registered on or after Feb 13, 2026.
Finally, the changes will not affect vehicles that are not eligible for PARF rebates, including Goods-cum-Passenger Vehicles (GPVs), classic and vintage cars, and vehicles that have been laid up.
Online reactions reflect frustration over perceived unfairness
Many online responses criticised the decision, pointing out how this will hurt Singaporeans. “Coming up with such a lame reason to remove [the] PARF rebate. It’s almost laughable,” one Facebook user stated.
Others suggested the move would push more owners to renew their COEs instead of scrapping their vehicles. “And this is easily encouraging people to renew their COEs as the rebate is close to nothing,” their comment read. This was echoed by another netizen who stated: “If [you’re] gonna scrap and just take back S$1000 PARF, might as well renew [your COE].”
Other users felt how unfair the policy was. They commented: “Right hand pretends to give [a] voucher, left hand takes [it] back.” This comment shows the exasperation people might feel with this new policy.
The bigger picture
While some motorists have expressed frustration over the policy shift, the LTA has said the move is necessary in the broader national interest.
They state that “the additional revenue from tightening PARF rebates will go towards government funding to benefit the wider public, including providing everyone with high-quality and affordable public transport.”
LTA also reiterated Singapore’s long-term goal of becoming a “car-lite society with inclusive transport for all Singaporeans.” In that context, the revised rebate structure is positioned as part of a wider effort to manage vehicle growth while strengthening the public transport network.
Whether the policy will ease concerns among car owners remains to be seen. What is clear, however, is that with lower rebates and a reduced cap, those registering vehicles from mid-February 2026 onwards may need to reassess their long-term ownership and COE renewal decisions.
In other news, an attempt to smuggle e-vaporisers into Singapore was foiled on Feb 6, 2026, after officers discovered the items hidden inside packages labelled as laundry detergent. A 39-year-old male Singapore driver was arrested in connection with the case. The matter has since been referred to the Health Sciences Authority (HSA) for further investigation.
Read the full story here: ICA foils e-vaporiser smuggling attempt disguised as laundry detergent at Woodlands Checkpoint
