The Civil Aviation Authority of Singapore (CAAS) will introduce a Sustainable Aviation Fuel (SAF) tax on flights departing from Singapore starting in 2026.
The tax is aimed at covering the cost of purchasing SAF, which will be mandatory for use on flights departing from Singapore starting in 2026. The goal is to achieve a 1% usage of SAF by 2026 and 3-5% by 2030.
The amount collected will be calculated based on the SAF targets and price forecasts, and it will not change even if the actual prices differ from the forecasts. The tax will be collected based on the distance traveled and the class of the seat, with an economy class flight from Singapore to Tokyo expected to be around 6 Singapore dollars (approximately 672 yen). Passengers traveling in higher classes will need to pay a higher amount.
Currently, flights departing from Singapore Changi International Airport collect a passenger service and security charge of 4,870 yen, an aviation development levy of 1,210 yen, and an aviation tax of 900 yen, with the passenger service and security charge set to increase in April.
CAAS continues to consult with stakeholders and plans to announce more details in 2025.
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