The revised VES structure will see a number of changes to the current vehicle bandings.
To make vehicle taxes 'more progressive', cars with an OMV upwards of $40,000 are set to be saddled with substantially higher additional registration fees.
$30 million will be set aside over the next five years for EV-related initiatives as part of the newly announced budget for 2021.
Owners of older, more pollutive motorcycles will receive incentives of up to $3,500 if they de-register their vehicles over the next five years.
According to statistics from the Land Transport Authority, there were 10,848 petrol-electric hybrid cars on Singapore roads as of January this year.
The increase in motorcycle COE premiums surprised dealers, who had expected the new higher taxes to dampen demand for two-wheeled vehicles.
Certificate of Entitlement prices for cars go up marginally despite a slow market, surprising some dealers in the process.
In 2006, COEs for small cars ranged between $8,000 and $13,000; the COE premium was $48,000 at the recent tender exercise that ended earlier this month.
Sales of luxury makes fell hard last year, with the tiered Additional Registration Fee (ARF) and financing restrictions being blamed.