Singapore is to introduce a sustainable aviation fuel (SAF) tax for air passengers – meaning the country will start charging tourists an extra fee to cover the cost of SAF production and procurement.
The levy will be for both passengers and cargo companies and will apply to all departing flights from next April; with fees depending on flight distance. For example, for US business passengers the fee will range from 77c to $32 per business passenger.
Civil Aviation Authority of Singapore (CAAS) General Director Han Kok Juan said: “The introduction of the SAF Levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub. It provides a mechanism for all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub. We need to make a start. We have done so in a measured way, and we are giving industry, businesses and the public time to adjust.”
The SAF levy news follows on from the recent announcement of Singapore establishing a new Government agency – SAFCo – which will be focused on buying SAF for use at the country’s largest airport, Changi International Airport. Singapore Establishes Government Agency to Procure SAF for Local Airport | ittn.ie
