Public Consultation on Proposed Changes to Certificate of Entitlement (COE) Categorisation for Cars

Land Transport Authority

Consultation Period: 8 Oct 2026 - 2 Nov 2026

Status: Open

Detailed Description

Introduction

1. The Land Transport Authority (LTA) is conducting a public consultation on proposed changes to the COE categorisation for cars. The public is invited to provide feedback on LTA’s proposed changes to more effectively distinguish between mass-market and higher-value cars in the COE system, while allowing COE prices to continue to be determined by market forces.

Background

2. Advances in vehicle technology, particularly the introduction of electric vehicles into the market, have made it increasingly difficult to distinguish between mass-market and higher-value cars using engine capacity and engine power. As a result, more car buyers  are competing for Category A COEs, narrowing the price gap between Categories A and B. From February to June 2026,  Category A COE prices have exceeded Category B prices on three occasions.

LTA’s Proposal

3. Following earlier engagements, LTA proposes to merge Categories A and B into a single passenger car category, with a fee-and-rebate (“feebate”) system based on the value of the car.

LTA would like to seek your views on:

4. Whether Categories A and B should be merged into a single passenger car category, with a feebate system based on the value of the car. Under the feebate system, buyers of lower-value cars would receive a rebate, buyers of mid-range cars would see no adjustment, and buyers of higher-value cars would pay an additional fee.

5. How the feebate system should be designed, and whether the feebate should apply to COE renewals. LTA proposes using median Open Market Value (OMV) to determine the COE feebate band for each car model. LTA is seeking views on whether to set three or five feebate bands, the rebate or surcharge amount for each band, and whether the feebate should apply to COE renewals. A three-band structure would be simpler to administer, but the adjustments between adjacent bands would be larger. A five-band structure would allow for smaller adjustments between adjacent bands and reduce the difference in treatment between broadly comparable cars that fall into adjacent bands but would make the administrative process more complex.

6. How Category E should be adjusted as a consequent, if Categories A and B are merged. Category E draws its quota from Categories A, B and C. In recent years, Category E COEs have been mostly used for Category B cars. If Categories A and B are merged into a single category, Category E will only be used to register vehicles in two categories—the merged car category and Category C—and will continue to be used predominantly to register cars, at the expense of Category C. One option is to remove Category E to further simplify the system. An alternative is to retain Category E for registration of cars only, so that car buyers with urgent needs will continue to have options, without impacting Category C COE supply.

Public Consultation Details

7. The consultation will close on 2 November 2026 at 11.59pm. Interested parties may refer to the full consultation paper [PDF, 455.59 KB] ↗ (opens in new tab) for more information on the proposals.

8. Feedback may be submitted online through go.gov.sg/coe-pcd-feedback ↗ (opens in new tab). Alternatively, interested parties may mail a hard copy to the following address:

Policy Division (Private Transport)

Land Transport Authority,

1 Hampshire Road Singapore 219428