LTA: Singapore to raise entry permit fees for foreign-registered vehicles from 2027 as the cost gap with local cars widens

SINGAPORE: Singapore will raise entry and road-use fees for foreign-registered vehicles from January 1, 2027, tightening rules that have stayed largely unchanged for years. The changes will affect cars, motorcycles, and goods vehicles entering Singapore. They will also introduce flat-rate ERP charges for foreign vehicles without the new on-board unit.

According to the Land Transport Authority (LTA), the move reflects a widening cost gap between foreign and Singapore-registered vehicles. Ownership and usage costs for local drivers have risen, while entry costs for foreign vehicles have lagged behind.

From 2027, the Vehicle Entry Permit (VEP) fee will rise to S$50 per day for cars and S$7 per day for motorcycles. This is up from S$35 and S$4 today. The fee will apply to all weekdays, except weekends and Singapore public holidays.

The current perks will also end. The annual 10 free VEP days will be removed. Free entry hours on weekdays will also be scrapped.

LTA said the review aims to keep costs fair. “This is to ensure that the cost of owning and using a foreign-registered vehicle in Singapore is commensurate with that of a Singapore-registered vehicle,” the authority said.

Goods vehicles will face higher costs too. The Goods Vehicle Permit (GVP) fee will increase from S$40 to S$70 per calendar month. Vehicle owners can still buy permits at the current rate before the change takes effect. Any permit covering dates from Jan 1, 2027, will be charged at the new rate.

Road charges will also change with the rollout of the ERP2 (Electronic Road Pricing) system. Foreign vehicles without an on-board unit will pay a flat ERP fee each operational day. Motorcycles will be charged S$3. All other vehicles will pay S$10.

Installing the new On-Board Unit (OBU) will remain optional for most foreign vehicles. Malaysian taxis are the exception and must install it for enforcement and tracking. Foreign motorists who choose to install the unit can do so from April 1, 2026. The device will cost S$158.70, including GST, until December 31, 2026. Installation fees are separate and set by authorised workshops in Singapore.

LTA said details on installation arrangements will be announced later.

The update reflects a broader push to align cross-border road use with local costs. It also signals firmer enforcement as Singapore prepares for its next-generation road pricing system.