The Business Times
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COMMENTARY

Singapore’s Parf rebate cut may favour China EV brands as ownership and borrowing costs rise

Industry players say the move will have far-reaching consequences across the automotive value chain

Summarise
Derryn Wong

Derryn Wong

Published Thu, Feb 19, 2026 · 07:00 AM
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    • The full impact of the recent updates to car taxes in Budget 2026 are unlikely to be seen immediately.
    • The full impact of the recent updates to car taxes in Budget 2026 are unlikely to be seen immediately. PHOTO: DERRYN WONG, BT

    [SINGAPORE] The cut in Preferential Additional Registration Fee (Parf) rebates marks one of the most consequential policy shifts for Singapore’s car market in years.

    The implications extend beyond car sales and Certificate of Entitlement (COE) premiums to every aspect of the industry.

    The full impact is unlikely to be immediate. As the changes apply to cars registered from Friday (Feb 20) onwards, the effects will take time to filter through the market.

    Singapore Budget 2026TaxesCar salesCarsAutomotive

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