Singapore defers sustainable aviation fuel levy for air cargo; levy on travellers to proceed as planned
Air travellers who buy tickets from Oct 1 this year for flights departing Singapore from Jan 1, 2027, will have to pay the sustainable aviation fuel levy.
Starting October 1, 2025, travellers who purchase tickets for flights departing Singapore will be required to pay a sustainable aviation fuel (SAF) levy, according to the Civil Aviation Authority of Singapore (CAAS). This new levy will apply to general, business, and air cargo flights, with the air cargo levy being postponed by one year.
The levy must be listed separately in the fare breakdown and will be collected by the Singapore Sustainable Aviation Fuel Company (SAFCo), a non-profit wholly owned by CAAS. The SAF levy aims to reduce aviation emissions by up to 80%, with collected funds used to purchase sustainable aviation fuel, cover administrative costs, and potentially meet offsetting requirements.
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