Singapore defers sustainable aviation fuel levy for air cargo; levy on travellers to proceed as planned

Singapore has decided to postpone the implementation of a sustainable aviation fuel (SAF) levy for air cargo shipments by one year, while maintaining the levy for air travelers as planned. According to the Civil Aviation Authority of Singapore (CAAS), passengers purchasing tickets from October 1, 2026, for flights departing Singapore from January 1, 2027, will be required to pay the SAF levy.

This includes general and business aviation flights, with the levy to be listed separately in the fare breakdown. However, the levy on air cargo services will not commence until October 1, 2027, for flights departing Singapore from January 1, 2028. This decision comes after gathering industry feedback, allowing more time for the CAAS to develop a robust mechanism for collecting the levy and working with stakeholders to create a system for purchasing and managing sustainable aviation fuel and its environmental attributes.

The SAF levy aims to reduce aviation emissions and support the growth of a sustainable aviation hub in Singapore.