SINGAPORE: Buckle up, foreign motorists! The Land Transport Authority (LTA) has announced significant changes to the Vehicle Entry Permit (VEP) fees starting in 2027, which will affect how foreign-registered vehicles enter Singapore.
New Fee Structure
- Cars: Increased from S$35 to S$50 per day
- Motorcycles: Increased from S$4 to S$7 per day
The VEP fee will now apply every day, excluding weekends and public holidays in Singapore. Additionally, the current 10 free days of VEP per year will be eliminated along with free entry hours during the weekday evenings.
Changes to Goods Vehicle Permits
The Goods Vehicle Permit (GVP) fee will also see a hike, changing from S$40 to S$70 per month. However, owners can still buy the GVP at the current rate until the new fee takes effect.
Why the Increase?
According to the LTA, these adjustments are necessary to ensure the costs associated with foreign vehicles align more closely with those of Singapore-registered vehicles.
“The cost difference has widened in recent years, giving rise to the need to increase the VEP fee for foreign-registered cars and motorcycles and the GVP fee for foreign-registered goods vehicles,” the LTA stated.
New ERP System on the Horizon
Starting 1 January 2027, Singapore will introduce an electronic road pricing (ERP) system that will require foreign vehicles without an On-Board Unit (OBU) to pay a flat-rate ERP fee. This will cost S$10 for motor vehicles and S$3 for motorcycles for each operational day that a vehicle is on Singapore’s roads.
OBU Installation Details
While installing the OBU isn’t mandatory for foreign vehicles except for Malaysian taxis, it will be available for installation from 1 April 2024. Interested motorists should consult with authorised workshops regarding installation fees, as these will be set by individual dealers.
For those looking to make this transition smoother, the cost of obtaining an OBU will remain at S$158.70 (inclusive of GST) until the end of 2026.
Complete details on the OBU installation process specifically for foreign vehicles will be shared by the LTA in the coming months. Stay tuned!