The government has announced adjustments to the Preferential Additional Registration Fee (PARF) rebates for vehicle scrappage, reducing the rebate amount by 45 percentage points. This change aims to align incentives with broader fiscal and environmental goals, reflecting a shift in policy direction. The cap on the maximum rebate available will also be lowered, limiting the financial benefit for owners opting to scrap older vehicles early.
These updates are part of the 2026 Budget measures designed to manage public spending while encouraging sustainable transportation choices. The revised framework will apply to all new vehicle registrations under the PARF scheme. While the intent remains to support greener transport options, the reduced rebates signal a more restrained approach to financial incentives.