The Civil Aviation Authority of Singapore (CAAS) has deferred the implementation of its sustainable aviation fuel (SAF) levy for air cargo shipments by one year, while keeping the levy for origin-destination passengers and general and business aviation on schedule, Ethanol Producer Magazine reported.
CAAS announced the decision on September 3. The SAF levy for cargo services will now apply to services sold from October 1, 2027, for flights departing Singapore from January 1, 2028.
The authority had announced in November 2025 that it would introduce a SAF levy covering origin-destination passengers, origin-destination cargo shipments, and general and business aviation flights departing Singapore. The levy was originally scheduled to take effect from October 1, 2026, for tickets or services sold from April 1, 2026.
In March 2026, CAAS deferred the implementation of the levy in view of the impact of the war in the Middle East. Following the revision, the requirements were scheduled to apply to tickets and services sold from October 1, 2026, for flights departing from January 1, 2027.
Under the latest decision, the levy for origin-destination passengers and general and business aviation will continue to be implemented as scheduled. It will apply to flights departing Singapore from January 1, 2027, with tickets and services sold from October 1, 2026.
CAAS said the cargo levy was being deferred to provide more time to establish an effective collection mechanism. Compared with passenger operations, cargo operations involve a wider range of stakeholders, including airlines, air express companies, freight forwarders and shippers, as well as different commercial arrangements.
The authority said the additional year would allow it to work with industry stakeholders to develop and implement a robust mechanism for collecting the SAF levy on cargo shipments departing Singapore.
Under the framework announced in November 2025, the SAF levy is calculated based on the volume of SAF required to meet the 1% SAF target for 2026, along with the projected price premium of SAF over conventional jet fuel and other associated costs, including certification, blending and delivery.
For passengers, the levy varies according to travel distance and cabin class. For cargo shipments, it is determined by distance travelled and carbon weight, while for general and business aviation flights, the levy is based on travel distance and aircraft size.
