09/10/2026
COE changes proposed. How can business owners benefit now?
LTA is proposing to merge COE Categories A and B, with rebates and surcharges based on a car model’s value.
The changes are still under consultation. But you can start planning today.
1. Review your next car purchase
A lower-value model could qualify for a rebate under the proposed system. Compare suitable models before committing.
2. Budget for different outcomes
A rebate does not guarantee a cheaper car, COE premiums will still depend on supply and demand. Assess the full cost, including financing, insurance and running expenses.
3. Protect your cash flow
If replacing your car is optional, assess whether keeping it longer would preserve cash for working capital or business growth.
4. Watch the renewal rules.
Whether the proposed rebates and surcharges will apply to COE renewals remains undecided.
My advice to CBO clients: Don’t rush to buy or delay buying based on the headlines alone.
Use this opportunity to review your numbers and make a decision that supports your cash flow and goals.
That’s what Business-Driving Accounting means: turning news into better financial decisions.
Buyers of higher-end cars could pay up to S$30,000 more than mass-market buyers.
