LTA is also proposing a "feebate" mechanism to apply surcharges or rebates, based on the type of car purchased.
\n\nPhoto via The Transport Enthusiast DC / Unsplash.
\n\nThe Land Transport Authority (LTA) has launched a public consultation exercise on the proposed merging of Categories A and B of the Certificate of Entitlement (COE) into a single passenger car category.
\n\nCategory A COE is currently for mass-market cars while Category B is for higher-end cars.
\n\nThe two categories are distinguished based on engine capacity and power.
\n\nLTA is also proposing the introduction of a "fee-and-rebate" ("feebate") mechanism on top of the merged category to continue ensuring a premium difference between the two car markets.
\n\nThe idea was mooted by Edward Chia, deputy chair of the Government Parliamentary Committee for transport and Member of Parliament for Holland-Bukit Timah GRC, during a focus group discussion in July 2026.
\n\nMerging Categories A and B would mean buyers of mass-market and higher-end cars would be able to bid from a combined pool of COEs.
\n\nBesides this merger, LTA is also proposing the introduction of a new "feebate" mechanism to ensure that higher-end car buyers continue to pay more than mass-market car buyers.
\n\nHow this works…
Original source: https://mothership.sg/
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