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—
Singapore
became the first country in the world to impose a tax on Sustainable Aviation Fuel (
Sustainable Aviation Fuel
or SAF).
This policy is part of Singapore’s commitment to decarbonization efforts and achieving the target of net zero carbon emissions in the aviation sector.
This SAF tax will begin to be imposed as of October 1, 2026 by
Civil Aviation Authority of Singapore
(CAAS) to all passengers departing from Singapore.However, passengers who are only transiting in the country will not be charged this additional fee.
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Furthermore, starting April 1 2027, airlines are required to include the SAF tax levy in the price details of all tickets or services, including for cargo deliveries and business flights.
The amount of tax charged varies, calculated based on the distance traveled and type of passenger cabin.
This tax is divided into four categories of flight routes, including;
1. Group I: Aviation in the Southeast Asia region.
2. Group II: Northeast Asia, South Asia, Australia and Papua New Guinea.
3. Group III: Africa, Central and West Asia, Europe, Middle East, Pacific Islands and New Zealand.
4. Group IV: America.
For example, economy class passengers will be charged around 1 Singapore dollar or around IDR 12 thousand for a flight to Bangkok, Thailand, and 2.80 Singapore dollars or around IDR 35 thousand for a trip to Tokyo, Japan.
For longer routes, the tax charged reaches 6.40 Singapore dollars or around Rp. 82 thousand for flights to London, England, and 10.40 Singapore dollars, around Rp. 133 thousand for trips to New York, USA.
Airlines will display these tax details in a separate line on the ticket price.
Director General of CAAS, Han Kok Juan, said that this SAF tax marks Singapore’s efforts to create a sustainable and competitive aviation center by imposing measurable fees for the air center.
“We have to start. We have done it in a measurable way, and we are giving industry, business and the public time to adjust,” said Juan, quoted by
Independent
.
This policy is in line with the target
International Civil Aviation Organization
(ICAO) to achieve net zero carbon emissions for international aviation by 2050.
When Singapore announced the SAF tax, France, Spain and Kenya were in
Conference of the Parties
(COP) 30th had proposed a much higher tax, namely 500 pounds sterling or around Rp. 11 million for premium class passengers.Although this tax was claimed to be an investment in the climate transition, the proposal was immediately rejected by
International Air Transport Association
(IATA).
(ana/wiw)
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