Singapore SAF Levy To Apply To Air Travellers From Jan 2027

Singapore: Air passengers starting their journeys in Singapore from Jan 1, 2027, will pay a Sustainable Aviation Fuel (SAF) levy on tickets and services sold from Oct 1 this year, as the country moves to support the aviation sector's transition towards cleaner fuels. According to Nam News Network, the Civil Aviation Authority of Singapore (CAAS) stated in a statement on Thursday 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). 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. SAFCo has been working with airlines and industry stakeholders to develop the operational processes and systems needed for levy returns and co llection, the authority said. Meanwhile, CAAS announced it would defer implementation of the SAF levy for air cargo shipments by one year. The levy will apply to cargo services sold from Oct 1, 2027, for flights departing Singapore from Jan 1, 2028. Taking into account industry feedback, the one-year deferment will allow more time for CAAS to work with the industry to develop and implement a robust SAF levy collection mechanism for cargo shipments on departing flights. CAAS Director-General Han Kok Juan mentioned that 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.