World

Singapore to raise VEP and GVP fees from 2027, scrap free entry days for foreign vehicles

Foreign-registered vehicles entering Singapore will face higher daily charges and the removal of long-standing fee exemptions from January 2027

Updated 8 months ago · Published on 06 Feb 2026 3:01PM

Singapore to raise VEP and GVP fees from 2027, scrap free entry days for foreign vehicles
Authorities move to narrow the cost gap between local and foreign vehicle ownership ahead of a new road pricing system - February 6, 2026

SINGAPORE will increase Vehicle Entry Permit (VEP) fees for foreign-registered cars and motorcycles and raise Goods Vehicle Permit (GVP) charges for foreign-registered goods vehicles from January 1, 2027,, while abolishing free entry days and time-based exemptions, the Land Transport Authority (LTA) announced on February 6.

In a statement, the authority said it reviews these fees periodically to ensure parity between foreign-registered and Singapore-registered vehicles using local roads. It noted that the cost difference has grown in recent years, “giving rise to the need to increase” the fees.

From 2027, the daily VEP fee for foreign-registered cars will rise from S$35 to S$50, while motorcycles will be charged S$7 a day, up from S$4. The VEP will apply on all days except weekends and Singapore public holidays.

The changes will also see the removal of the current annual allocation of 10 free VEP days for foreign-registered cars and motorcycles.

The Straits Times reported on Friday that, in addition, weekday time-based exemptions will be scrapped.

At present, foreign vehicles are not required to pay the VEP if they enter Singapore from 5pm and exit by 2am the following day, or if they enter from 12pm and exit by 2am during the June and December school holidays.

For foreign-registered goods vehicles, the GVP fee will increase from S$40 to D$70 per calendar month.

Owners may continue to purchase the permit at the current S$40 rate before the revised fee takes effect. However, any GVP with a validity period starting from the effective date of the new charges will be billed at S$70 for each calendar month, LTA said.

The authority also outlined arrangements ahead of Singapore’s next-generation Electronic Road Pricing system, which will be introduced on January 1, 2027.

From April 1, motorists may install the new ERP2 On-Board Unit (OBU) in foreign-registered vehicles to prepare for the transition.

Installation of the OBU will be mandatory for Malaysian taxis for tracking and enforcement purposes in Singapore, but optional for other foreign-registered vehicles.

From January 1, foreign-registered vehicles entering Singapore without an OBU will be charged a flat-rate ERP fee on each ERP operational day.

Motorcycles will pay S$3, while all other vehicles will be charged S$10 per day when travelling on Singapore roads. Currently, foreign-registered cars without an In-Vehicle Unit are charged S$5 a day when using ERP-priced roads during operating hours.

Motorists can install the OBU in their foreign-registered vehicles at a cost of S$158.70 until December 31, excluding installation fees. Installation may only be carried out in Singapore by authorised workshops and technicians.

LTA said motorists should check directly with authorised OBU workshops regarding installation charges, adding that further details on installation arrangements for foreign motorists will be announced in due course. - February 6, 2026

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