The Singaporean government will begin taxing the airfare of travelers departing from the country to compensate for the use of eco-friendly fuel.
The Civil Aviation Authority of Singapore (CAAS) shared about the new tax in a November 2025 press release. Known as the “Sustainable Aviation Fuel (SAF) Levy,” the tax will apply to most flights departing from Singapore. These include passenger planes, cargo shipments, and “general and business aviation flights,” according to the government.
For most passengers, that levy won’t put too much of an added expense to their departure from Singapore. Depending on their cabin and flight destination, the additional fee will range from S$1 to S$41.60. That’s up to around $32 on the levy’s higher end. Travelers will see the Sustainable Aviation Fuel Levy as a distinct fee listed when booking with airlines, as part of their airfare. Notably, the Singaporean government will not tax travelers passing through the country on their way to their ultimate destination.
CAAS detailed that the levy money collected will solely be used to purchase “SAF and/or SAF environmental attributes (EAs)3.” It will also go toward covering “associated administrative costs.” Implementing the tax is Singapore’s way of hitting its goals for more sustainable air travel, with target dates in 2026 and 2030. With the rollout of the “SAF Levy,” Singapore will be the first country in the world to explicitly tax its flyers for the usage of the eco-friendly fuel.
What Else Is There To Know About Singapore’s Sustainable Aviation Fuel Levy?
Flyers will begin seeing the tax on their airfare for tickets sold from April 1, 2026, applying to flights departing on or after October 1, 2026. How much tax will be tacked on depends on the length of a passenger’s flight and how much SAF the plane will need to fly, with aircraft required to use at least 1% of the more eco-friendly fuel. The Singaporean government notes that the levy is also determined by “the projected price premium of SAF over conventional jet fuel, and other associated costs, including the cost of certification, blending, and delivery.”
In addition to where they’ll be flying from Singapore, passengers will also be taxed based on their cabin class. Those flying economy will be taxed less than those flying in a premium cabin. Those in the latter section of the plane will pay four times as much for the levy.
Officials will determine the Sustainable Aviation Fuel Levy slightly differently for cargo shipments, and for general and business flights. Flights exempt from paying the tax include those made for “charitable or humanitarian purposes.”
The International Civil Aviation Organization (ICAO) provides insight on what sustainable aviation fuels are. It defines the energy as “renewable or waste-derived aviation fuels that meet sustainability criteria.” The source further asserted that “SAF has the greatest potential to reduce CO2 emissions from international aviation.”
“The introduction of the SAF Levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub,” said CAAS Director-General Mr. Han Kok. “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.”
