What exactly is the PARF rebate and what changed?

PARF rebate is the amount you recover when you de-register a car, based on taxes paid and age. Budget 2026 cuts rebate rates by 45 percentage points and halves the cap to S$30,000 for cars registered with COEs from Feb 16. That means a smaller paper value at exit.

Who is affected by the new cap and when?

Cars registered with new COEs from Feb 16 fall under the new rules. Vehicles already registered keep current terms. The timing matters if you are choosing between in-stock cars versus fresh orders, because the rebate framework depends on the registration date, not booking or delivery.

How could COE prices react to the rebate cut?

With a smaller parf rebate backstop, bidders may reduce COE bids to reflect higher future value risk, especially in categories where owners sell early. In the next few rounds, dealers may pause to reprice packages. Final outcomes still depend on quota, EV demand, and wider household budgets.

What about tobacco tax singapore and cigarette price singapore?

From Feb 12, tobacco excise rises 20 percent. As retailers reprice, the typical cigarette price singapore should lift. This can add a small inflation bump. The move runs alongside the rebate changes under Budget 2026 and may briefly shift household spending patterns.

Law and Government

Singapore PARF Rebate Cut: Cap Halved to S$30k — February 12

ByHuzaifa Zahoor February 12, 2026February 12, 2026

Singapore’s Budget 2026 cuts the parf rebate by 45 percentage points and halves the cap to S$30,000, effective for cars with COEs from Feb 16. This policy reshapes car ownership math, affects used-car residuals, and may cool COE bids. We explain what changed, who is hit, and near-term moves for buyers and owners. We also note the 20% tobacco excise hike and what it means for cigarette price singapore. We keep terms simple and focus on decisions you face today.