Singapore Introduces Sustainable Aviation Fuel Levy on Departing Flights From 2027
Why It MattersA mandatory per-departure charge that reaches business and general aviation as well as airlines moves Singapore's emissions funding onto every operator and ground handler serving its two airports.
Singapore has introduced a Sustainable Aviation Fuel (SAF) Levy to fund the procurement of sustainable aviation fuel and support the reduction of aviation emissions. The legislation took effect on 1 October 2026. The levy applies to qualifying passenger and general and business aviation flights departing Singapore from 1 January 2027, for tickets or services sold from 1 October 2026. The cargo levy will apply to services sold from 1 October 2027 for flights departing Singapore from 1 January 2028.
The levy is a mandatory charge on qualifying commercial and non-commercial flights departing from Changi Airport or Seletar Airport to an immediate destination outside Singapore. Type 1, the passenger levy, covers scheduled commercial flights regardless of seat capacity and non-scheduled commercial flights on aeroplanes with more than 70 approved passenger seats, and is charged per chargeable passenger. Type 2, the general and business aviation levy, covers non-scheduled commercial flights on aeroplanes with 70 or fewer approved passenger seats or on helicopters, among other categories. Domestic flights within Singapore and flights by aircraft that cannot use aviation jet kerosene as a power source are outside the scope. Excluded flights include military, diplomatic, government, humanitarian, charitable, search and rescue, approved flight training, and maintenance, repair or overhaul flights. Technical stopovers solely for refuelling, crew changes or minor repairs are exempt if no passengers embark or disembark.
Rates depend on the destination band, determined by the first destination outside Singapore for multi-stop flights. Band I is Southeast Asia; Band II is Northeast Asia, South Asia, Australia and Papua New Guinea; Band III is Africa, Central and West Asia, Europe, the Middle East, Pacific Islands and New Zealand; Band IV is Canada and the United States. Type 1 rates range from S$1.00 to S$41.60 per chargeable passenger. Economy and Premium Economy are charged at the economy rate, while Business and First Class are charged at the premium rate, four times the economy rate.
Operators are not required to buy or use SAF for each chargeable flight. The levy is collected centrally and used to fund the purchase of SAF and related environmental attributes through a statutory SAF Fund. SAFCo manages collection and procurement on behalf of the Civil Aviation Authority of Singapore (CAAS). The aircraft operator is legally responsible for payment: for commercial air transport and aerial work, the person who conducts or offers to conduct the flight; for other flights, the aircraft owner. The operator may pass the levy on to the ticket purchaser or charterer.
The Ground Handling Agent (GHA) handling the flight collects the levy from the operator and assists with the post-flight declaration. For Business and General Aviation flights, the licensed GHA servicing each flight exclusively handles the declaration and payment on the operator's behalf through IATA, SAFCo's appointed levy collection service provider. Operators must retain records relevant to their SAF Levy returns for five years from the date each record is made. Late payment attracts daily interest at 4.5 percentage points above Singapore's three-month compounded SORA.
