LTA consults public on merging car COE categories A and B
The Land Transport Authority (LTA) launched a public consultation on 8 October 2026 on proposed changes to how cars are grouped in the Certificate of Entitlement (COE) system. The consultation runs until 11.59pm on 2 November 2026.
LTA’s preliminary proposal is to merge Categories A and B into a single passenger car category, paired with a fee-and-rebate (‘feebate’) system based on the value of the car. The aim, LTA said, is to distinguish better between mass-market and higher-value cars while still letting COE prices be set by the market. It is also asking how the Open Category E should change if A and B are combined.
The proposal follows focus group discussions with car buyers, sellers and academics as part of LTA’s wider review of the COE framework. Members of the public and industry can submit views through the link in LTA’s release, which also has the consultation paper and an annex on other suggestions it assessed.
LTA said it also assessed other suggestions raised in the focus groups, and explains in the annex to the consultation paper why it did not take them forward. Its final decision will come after the consultation closes.
Feedback can be submitted until 11.59pm on 2 November 2026 through the online form linked from LTA’s release, which also hosts the full consultation paper.
What it means for commercial fleets: the consultation covers cars only. Category C for goods vehicles and buses is not part of the proposal. But Category E matters to fleet owners, because an Open COE can be used to register a goods vehicle, and some businesses use Cat E when Cat C supply is tight. Any change to how Category E works could therefore affect commercial buyers indirectly.
Companies that run company cars, or that rely on Category E for commercial registrations, may want to read the paper and give feedback before the 2 November deadline.
Source: Land Transport Authority — Read the original
