SINGAPORE, Sept 3 — Air passengers starting their journeys in Singapore from January 1, 2027, will pay a Sustainable Aviation Fuel (SAF) levy on tickets and services sold from October 1 this year, as the country moves to support the aviation sector’s transition towards cleaner fuels.
The Civil Aviation Authority of Singapore (CAAS) said in a statement today that the levy must be reflected in the fare breakdown alongside taxes and other charges.
The Singapore Sustainable Aviation Fuel Company Ltd (SAFCo), a non-profit company wholly owned by CAAS, would be the designated collection agent for the SAF levy and would also procure, manage, account for and allocate SAF and SAF environmental attributes (EAs), it said.
“All proceeds will be channelled into a statutory SAF Fund to finance the purchase of SAF and related EAs, as well as cover administrative costs,” it said.
SAFCo had been working with airlines and industry stakeholders to develop the operational processes and systems needed for levy returns and collection, the authority said.
Meanwhile, CAAS said it would defer implementation of the SAF levy for air cargo shipments by one year.
The levy will apply to cargo services sold from October 1, 2027, for flights departing Singapore from January 1, 2028.
“Taking into account industry feedback, the one-year deferment will allow more time for CAAS to work with industry to develop and implement a robust SAF levy collection mechanism for cargo shipments on departing flights,” it said.
CAAS Director-General Han Kok Juan said the agency had worked closely with airlines and other global industry partners to set up a robust regime for SAF levy collection, procurement and environmental attributes management.
“In doing so, CAAS seeks to lay the foundation for Singapore to serve as a trusted hub for SAF-related economic activities in the region,” he said. — Bernama
