Proposed COE revision: How it works and what it means for prospective buyers

The Land Transport Authority aims to “more effectively distinguish between mass-market and higher-end cars”.

Published Oct 08, 2026, 05:01 PM

Updated Oct 08, 2026, 05:01 PM

SINGAPORE – For years, Category A certificates of entitlement (COEs) were meant for mass-market cars, while Category B COEs were reserved for premium vehicles.

However, that distinction has blurred more recently, with Category A COE premiums almost on a par with Category B prices – even overtaking them three times in just four months in 2026 .

To address this, the Land Transport Authority (LTA) has proposed merging the two categories and introducing a tiered system of surcharges or subsidies based on a vehicle’s value.

Members of the public have until Nov 2 to provide feedback on these proposed changes, and the authority will share its findings by the first half of 2027.

The Straits Times takes a closer look at what the proposed revisions entail.

What is the aim of the COE review?

With the rapid adoption of electric vehicles (EVs) , differentiating between a mass-market car and a luxury model has become increasingly difficult.

Currently, an internal combustion engine car qualifies for Category A if its engine capacity is capped at 1,600cc and its maximum power output does not exceed 130bhp.

EVs, on the other hand, cannot have a power output that exceeds 110kW.

However, carmakers have been able to adjust the power output of their models so that they fit within the threshold of a Category A COE.

This has fuelled stronger demand for COEs in this category, driving up prices to – and occasionally past – Category B levels.

Through this review of the COE system, LTA aims to “more effectively distinguish between mass-market and higher-end cars”, while still allowing market forces to determine COE prices.

What are the proposed changes in COE categories?

Instead of separate categories, all cars would fall under a single COE category. A rebate or surcharge would be applied based on a vehicle’s open market value (OMV).

LTA has proposed two ways to structure this new system, which will categorise cars into different bands based on their median OMV, calculated using past registration data.

Under a three-band system, car models in the lowest band would receive a $15,000 rebate, while those in the highest band would face a $15,000 surcharge.

Cars in the middle band would pay the full COE amount without any rebate or surcharge.

Alternatively, LTA suggests a five-band system that “would allow for smaller adjustments”. In this case, cars in the lowest band would receive the maximum $15,000 rebate, while those in the second lower band would get a smaller rebate of $7,500.

The middle band remains unchanged.

On the upper end, the fourth and fifth bands would incur surcharges of $7,500 and $15,000 respectively.

Why use median open market value (OMV)?

OMV is the baseline cost of a vehicle before taxes, or the value at which it is imported.

The OMV can fluctuate over time, depending on factors such as exchange rate movements and changes to supply chains.

LTA therefore suggests using the historical median OMV to determine a model’s banding and rebate eligibility. For a new model, the OMV of the specific car will be used.

The authority said it would publish the band assigned to each car model annually so that potential buyers know if they would incur a surcharge before making any decisions.

What happens to Category E COEs?

COEs in Category E, also known as the Open category, can be used for any vehicle type except motorcycles, although they end up being used almost exclusively for larger, more powerful cars.

Motor traders often secure such COEs for the flexibility of registering cars without waiting for the next tender exercise.

LTA is seeking views on whether the category should be phased out – though this could impact those who urgently need to purchase a car – or modified so that the COE can only be used to register cars.

How will the proposed changes affect COE prices?

It is difficult to say how COE prices will be affected.

The proposed revisions are meant to ensure a clearer differentiation between mass-market and higher-end cars, and that those opting for the luxury models end up paying more.

They are not meant to lower COE prices.

Academics told ST that introducing rebates for models with lower OMVs could possibly result in more people shopping for cars, as mass-market models would appear more affordable.

If that happens, the higher demand would result in COE premiums increasing.

How will COE renewal work?

It is unclear if there would be any major changes made to COE renewal.

At present, car owners renew COEs based on the prevailing quota premium (PQP) of their respective categories, which is calculated using a moving average of the prices in the past three months.

While merging Categories A and B would create a single COE price and PQP, LTA noted that the price convergence in recent years meant that owners already pay similar amounts to renew their COEs.

Therefore, it remains to be seen whether introducing a surcharge or rebate model, similar to the system proposed for new car purchases, will apply to renewal.

LTA said if the proposed changes are adopted, it may consider transitional arrangements for existing car owners wishing to renew their COEs.

There are no changes to the COE bidding process, vehicle taxes and other fees.

Those interested in providing feedback on the proposals can do so here .

The consultation exercise will close at 11.59pm on Nov 2. The review is expected to be completed by the first half of 2027. It is unclear if there would be any major changes made to COE renewal.

Aqil Hamzah is a transport journalist at The Straits Times. He is also interested in issues related to crime and technology.

陆路交通管理局的目标是“更有效地区分大众市场汽车和高端汽车”。

发布于 2026 年 10 月 8 日下午 5:01

更新于2026年10月8日下午5:01

新加坡——多年来，A类拥车证（COE）是为大众市场汽车准备的，而B类拥车证则保留给高档车辆。

然而，这种区别最近变得模糊不清，A类拥车证溢价几乎与B类拥车证价格持平——甚至在2026年的短短四个月内就超过了B类拥车证价格三次。

为了解决这个问题，陆路交通管理局 (LTA) 提议将这两个类别合并，并根据车辆价值引入分级附加费或补贴制度。

公众可在 11 月 2 日前就这些拟议的变更提出反馈意见，有关部门将于 2027 年上半年公布调查结果。

《海峡时报》深入分析了拟议的修订内容。

COE审查的目的是什么？

随着电动汽车（EV）的迅速普及，区分大众市场汽车和豪华车型变得越来越困难。

目前，如果内燃机汽车的发动机排量不超过 1600cc，最大功率输出不超过 130 马力，则该汽车符合 A 类汽车的标准。

另一方面，电动汽车的功率输出不能超过 110kW。

然而，汽车制造商已经能够调整其车型的动力输出，使其符合 A 类 COE 的门槛。

这刺激了对这类拥车证的更强劲需求，推高了价格，使其达到——有时甚至超过——B类拥车证的水平。

通过对拥车证制度的此次审查，陆路交通管理局旨在“更有效地区分大众市场汽车和高端汽车”，同时仍然允许市场力量决定拥车证价格。

COE类别有哪些拟议变更？

所有车辆将不再按类别划分，而是归入同一个拥车证（COE）类别。根据车辆的公开市场价值（OMV），将适用相应的折扣或附加费。

陆路交通管理局提出了两种构建这一新系统的方法，该系统将根据汽车的OMV中位数（使用过去的注册数据计算）将汽车分为不同的等级。

根据三级制度，最低级别的汽车将获得 15,000 美元的退税，而最高级别的汽车将面临 15,000 美元的附加费。

中等价位的车辆将全额缴纳拥车证费用，没有任何折扣或附加费。

陆路交通管理局建议采用五级分级制度，“这样可以进行更小幅度的调整”。在这种情况下，最低级别的车辆将获得最高的15,000新元补贴，而次低级别的车辆将获得较低的7,500新元补贴。

中间频段保持不变。

最高级别的第四级和第五级将分别收取 7,500 美元和 15,000 美元的附加费。

为什么要使用公开市场价值中位数（OMV）？

OMV 是车辆税前的基本成本，或者说是车辆进口时的价格。

OMV 会随时间波动，具体取决于汇率波动和供应链变化等因素。

因此，陆路交通管理局建议使用历史中位数市场交易价格（OMV）来确定车型的等级和退税资格。对于新车型，则使用该特定车辆的市场交易价格（OMV）。

该机构表示，将每年公布每款车型的税率等级，以便潜在买家在做出任何决定之前知道是否需要支付附加费。

E类COE会如何处理？

E类拥车证（也称为开放类拥车证）可用于除摩托车以外的任何车辆类型，但最终几乎全部用于更大、更强大的汽车。

汽车贸易商经常会申请此类拥车证，以便灵活地注册车辆，而无需等待下一次招标。

陆路交通管理局正在征求意见，看是否应该逐步取消拥车证类别（尽管这可能会影响那些急需购车的人），或者修改拥车证类别，使其只能用于注册汽车。

拟议的变更将如何影响拥车证价格？

很难说拥车证价格会受到怎样的影响。

拟议的修订旨在确保大众市场汽车和高端汽车之间有更清晰的区分，并且选择豪华车型的人最终要支付更多费用。

它们并非旨在降低拥车证价格。

学者们告诉《海峡时报》，对 OMV 较低​​的车型引入折扣可能会促使更多人购买汽车，因为大众市场车型看起来会更实惠。

如果这种情况发生，更高的需求将导致拥车证溢价上涨。

拥车证续期流程是怎样的？

目前尚不清楚拥车证续期流程是否会有任何重大变化。

目前，车主根据其各自类别的现行配额溢价（PQP）续期拥车证，该溢价采用过去三个月价格的移动平均值计算得出。

虽然合并 A 类和 B 类车辆将产生单一的拥车证价格和购车许可证价格，但陆路交通管理局指出，近年来价格趋同意味着车主续签拥车证时已经支付了类似的金额。

因此，是否将类似于新车购买的附加费或回扣模式引入续保，还有待观察。

陆路交通管理局表示，如果拟议的变更获得通过，可能会考虑为希望续签拥车证的现有车主制定过渡安排。

拥车证竞标流程、车辆税及其他费用均无变化。

有兴趣对提案提出反馈意见的人可以在这里提出。

此次公众咨询将于11月2日晚上11点59分结束。预计审查工作将于2027年上半年完成。目前尚不清楚拥车证续期流程是否会有任何重大变化。

阿基尔·哈姆扎是《海峡时报》的交通记者。他也对犯罪和科技相关议题感兴趣。