Written Reply to Parliamentary Question on Update on Relevance of Preferential Additional Registration Fee Scheme to Minimise Pollution from Older Vehicles

Mr Murali Pillai asked the Minister for Transport having regard to the Government’s plans for an electric vehicle population under the Singapore Green Plan 2030 and environmental impact from mining lithium, whether the Government will consider reviewing the relevance of the Preferential Additional Registration Fee scheme which was introduced to keep the average age of cars in Singapore young, reduce breakdown rates and pollution from exhaust fumes.

Reply by Minister for Transport S Iswaran:

1.     The Preferential Additional Registration Fee (PARF) scheme incentivises motorists to deregister their cars before 10 years of age. It serves to reduce the number of old cars, so that there will be fewer breakdowns on our roads and less traffic disamenities. Over time, newer cars have come with cleaner engines, so PARF does help to reduce air pollution on our roads.

2.     The PARF scheme has worked well so far, keeping the average age of the car population relatively young at nine to 10 years. As most cars still use internal combustion engines, the PARF scheme remains relevant.

3.     As we move towards a predominantly electric car population, the Land Transport Authority will closely monitor and study how an electric car’s age could affect its propensity to break down, and review the relevance of the PARF scheme.